The European Central Bank (ECB) has lowered its key interest rate by 0.25 percentage points to 4.25 percent. This first interest rate cut since 2019 makes loans cheaper. This is particularly attractive for property buyers. Due to potentially lower loan costs, the interest rate cut can make buying property considerably easier.
Especially in an environment of rising property prices, this offers welcome relief for property buyers. Prospective buyers should keep an eye on the conditions for property loans - they may create additional financial leeway. Lower financing costs can increase demand for housing and stimulate the real estate market.
However, experts point out that the key interest rate only has an indirect effect on the development of building interest rates. Prospective buyers should also take the inflation rate into account when making their purchase decision. The ECB had raised the key interest rate for years in order to counteract inflation.
© immonewsfeed
