The mortgage interest rate in Germany decreased notably between 2013 and 2022, falling below *** percent. This was part of an overall trend of falling mortgage interest rates in Europe. The mortgage interest rate in Germany has since increased to *** percent in the first quarter of 2025. The German mortgage market In Europe, Germany is the second-largest mortgage market, with a total value of mortgages outstanding amounting to nearly *** trillion euros. Mortgage loans are one of the oldest bank products. Among the factors that influence mortgage interest rates are inflation, economic growth, monetary policies, the bond market, the stability of lenders, and the overall conditions of the housing market. Mortgage loans The higher cost of borrowing has a significant effect on the market: While the interest rates were at their lowest, mortgage lending was on the rise. In 2023, when the rates reached a 10-year-high, the quarterly gross mortgage lending fell to the lowest value since 2014. Meanwhile, house prices have also increased substantially in recent years. According to the House Price Index in Germany, between 2015 and 2024, house prices increased by nearly ** percent.

After a period of record-low mortgage interest rates, the cost of mortgage borrowing in Germany surged in 2022. In 2019, mortgage rates declined notably, falling as low as **** percent in December 2020. This downward trend reversed in 2021, as mortgage rates started to gradually pick up. Five-to-ten-year mortgage loans had the lowest rates in March 2025 at **** percent, while floating rate mortgages up to one year were the most expensive at **** percent. Mortgages with over **-year fixed period – the most popular loan type among homebuyers — had an interest rate of **** percent. Why did mortgage rates in Germany increase? In 2022, the annual inflation rate in Germany experienced a swift rise, prompting the central bank to raise interest rates to counter this surge. The European Central Bank (ECB) is responsible for determining Germany's central bank interest rate. In July 2022, following a prolonged period of stability, the average interest rates in Germany began a steady rise, which persisted consistently thereafter.  This increase is intended to stabilize prices, but it also means higher borrowing costs for those seeking mortgages. Downturn in Germany's home loan borrowing From 2022 onward, the gross residential mortgage lending in Germany fell dramatically. Besides the higher interest rates, the downturn can be explained by the slowed pace of economic growth, which makes individuals and businesses more cautious about big investments such as buying a home. Additionally, the German housing market suffers a chronic undersupply, meaning that homebuyers often struggle to find an affordable home to purchase.

Bank Lending Rate in Germany increased to 3.95 percent in September from 3.92 percent in August of 2025. This dataset provides the latest reported value for - Germany Bank Lending Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The benchmark interest rate in Germany was last recorded at 4.50 percent. This dataset provides - Germany Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The annual average interest rate on new residential loans in Germany generally decreased between 2007 and 2023, with some fluctuation. It declined from **** percent in 2007 to **** percent in 2021. In 2023, it significantly rose to **** percent, the highest rate recorded since 2010. Nevertheless, this rate varied for different loan types, with floating mortgage rates being the most expensive as of October 2023.

Residential mortgage lending in Germany plummeted in 2022, amid an increase in mortgage rates. With interest rates gradually increasing as a response to the rising inflation, the mortgage market cooled. After reaching a low of around **** billion euros in February 2023, the value of new mortgage loans has gradually increased again, parallel to a decline in interest rates. In September 2025, new mortgage lending stood at about **** billion euros. During the observation period, 10-year fixed rate mortgages accounted for nearly half of mortgage lending, followed by 5 to 10 year fixed rate mortgages. More information on the Mortgage market in Western European countries can be found here.

The rate of home owners with a mortgage or loan in Germany fluctuated between 2010 and 2021. It can be seen that 28 percent of German households had a mortgage in 2021. This was an decrease from the previous year, when 31 percent of households had a mortgage loan.

The table below showcases the 10th, 25th, 50th, 75th, and 90th percentiles of mortgage rates for each zip code in New Germany, Minnesota. It's important to understand that mortgage rates can vary greatly and can change yearly.

View monthly updates and historical trends for Germany Long Term Interest Rate. Source: European Central Bank. Track economic data with YCharts analytics.

Germany - Overcrowding rate: Owner, no outstanding mortgage or housing loan was 2.70% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Germany - Overcrowding rate: Owner, no outstanding mortgage or housing loan - last updated from the EUROSTAT on December of 2025. Historically, Germany - Overcrowding rate: Owner, no outstanding mortgage or housing loan reached a record high of 2.90% in December of 2023 and a record low of 1.10% in December of 2013.

Germany New Mortgage Agreements: Prev Year % Change data was reported at 1.400 % in 03 Aug 2020. This records an increase from the previous number of 1.000 % for 27 Jul 2020. Germany New Mortgage Agreements: Prev Year % Change data is updated weekly, averaging 4.500 % from Dec 2019 (Median) to 03 Aug 2020, with 32 observations. The data reached an all-time high of 26.700 % in 06 Jul 2020 and a record low of -6.000 % in 01 Jun 2020. Germany New Mortgage Agreements: Prev Year % Change data remains active status in CEIC and is reported by Federal Statistics Office Germany. The data is categorized under Global Database’s Germany – Table DE.KB028: Weekly Loan Agreements and Online Transactions.

Germany - Housing cost overburden rate: Owner, with mortgage or loan was 14.50% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Germany - Housing cost overburden rate: Owner, with mortgage or loan - last updated from the EUROSTAT on December of 2025. Historically, Germany - Housing cost overburden rate: Owner, with mortgage or loan reached a record high of 15.60% in December of 2023 and a record low of 7.70% in December of 2020.

The total amount of outstanding residential mortgage lending in Germany grew quarterly since the second quarter of 2014. This value increased to nearly *** trillion euros by the fourth quarter of 2024. Along with the United Kingdom and France, Germany was one of three European countries that exceeded *** trillion in outstanding residential mortgage lending.

Discover the booming European home mortgage finance market! This in-depth analysis reveals a €500B+ market with a CAGR exceeding 6%, driven by demographics, government incentives, and low-interest rates. Explore key trends, segments (home purchase, refinance, providers), and leading companies. Get insights for investment and strategic planning. Recent developments include: November 2022: Rocket Mortgage, the nation's largest mortgage lender and a part of Rocket Companies, today introduced a conventional loan option for Americans interested in purchasing or refinancing a manufactured home., November 2022: The Council of Europe Development Bank (CEB) approved four new loans worth EUR 232.5 million to boost affordable housing and other social sector development. Under this, it offered EUR 25 million in loans to Kosovo to finance the 'Adequate Social Housing Programme' to establish a sustainable social and affordable housing system in the country.. Notable trends are: Increased Number of Salaried Individuals is Driving the Market Growth.

Germany - Severe housing deprivation rate: Owner, with mortgage or loan was 0.30% in December of 2023, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Germany - Severe housing deprivation rate: Owner, with mortgage or loan - last updated from the EUROSTAT on November of 2025. Historically, Germany - Severe housing deprivation rate: Owner, with mortgage or loan reached a record high of 0.90% in December of 2018 and a record low of 0.10% in December of 2020.

Mortgage interest rates worldwide varied greatly in June 2025, from less than ******percent in many European countries to as high as ***percent in Turkey. The average mortgage rate in a country depends on the central bank's base lending rate and macroeconomic indicators such as inflation and forecast economic growth. Since 2022, inflationary pressures have led to rapid increases in mortgage interest rates. Which are the leading mortgage markets? An easy way to estimate the importance of the mortgage sector in each country is by comparing household debt depth, or the ratio of the debt held by households compared to the county's GDP. In 2024, Switzerland, Australia, and Canada had some of the highest household debt to GDP ratios worldwide. While this indicator shows the size of the sector relative to the country’s economy, the value of mortgages outstanding allows to compare the market size in different countries. In Europe, for instance, the United Kingdom, Germany, and France were the largest mortgage markets by outstanding mortgage lending. Mortgage lending trends in the U.S. In the United States, new mortgage lending soared in 2021. This was largely due to the growth of new refinance loans that allow homeowners to renegotiate their mortgage terms and replace their existing loan with a more favorable one. Following the rise in interest rates, the mortgage market cooled, and refinance loans declined.

This dataset provides values for INTEREST RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

The Direct Real Estate Activities industry have come up against numerous headwinds in recent years, ranging from the COVID-19 outbreak in 2020 to the high base rate environment in the years since, which has inflated borrowing costs for potential buyers. This is a sharp contrast to the ultra-low interest environment seen over the decade following the 2008 financial crisis. Still, revenue is forecast to edge upwards at a compound annual rate of 0.6% over the five years through 2025 to €622.9 billion, including an anticipated rise of 0.8% in 2025. Despite weak revenue growth, profitability remains strong, with the average industry profit margin standing at an estimated 18.9% in 2025. Central banks across Europe adopted aggressive monetary policy in the two years through 2023 in an effort to curb spiralling inflation. This ratcheted up borrowing costs and hit the real estate sector. In the residential property market, mortgage rates picked up and hit housing transaction levels. However, the level of mortgage rate hikes has varied across Europe, with the UK experiencing the largest rise, meaning the dent to UK real estate demand was more pronounced. Commercial real estate has also struggled due to inflationary pressures, supply chain disruptions and rising rates. Alongside this, the market’s stock of office space isn’t able to satisfy business demand, with companies placing a greater emphasis on high-quality space and environmental impact. Properties in many areas haven't been suitable due to their lack of green credentials. Nevertheless, things are looking up, as interest rates have been falling across Europe over the two years through 2025, reducing borrowing costs and boosting the number of property transactions, which is aiding revenue growth for estate agents. Revenue is slated to grow at a compound annual rate of 4.5% over the five years through 2030 to €777.6 billion. Economic conditions are set to improve in the short term, which will boost consumer and business confidence, ramping up the number of property transactions in both the residential and commercial real estate markets. However, estate agents may look to adjust their offerings to align with the data centre boom to soak up the demand from this market, while also adhering to sustainability commitments.

The value of residential mortgage lending in Germany increased in 2024, following a period of decline and stabilization. In the first quarter of 2025, the value of new loans reached **** billion euros, up from **** billion euros the same quarter a year ago.The worsening economic conditions, higher interest rates, and the lack of affordable housing are among the factors leading to the decline in mortgage lending. Nevertheless, Germany is among the largest mortgage markets in Europe. More information on the Mortgage market in Western European countries can be found here.

Between 2010 and 2025, the ratio of residential mortgage loans to GDP in Germany varied from a low of approximately ** percent in the fourth quarter of 2017 to a high of almost ** percent in the second quarter of 2020. As a result of the coronavirus (COVID-19) pandemic, Germany suffered an economic downturn. While the country's gross domestic product (GDP) contracted, residential mortgage lending remained strong. As of the third quarter of 2025, Germany's mortgage debt measured about ** percent of the GDP, continuing the overall downward trend of the past years.