The situation on the real estate financing market appears to be stabilizing according to the latest data from construction finance broker Hüttig & Rompf AG. The decline in new business for residential construction and mortgage loans for private households has slowed. "Prospective buyers thus appear to be hesitantly adapting to the new interest rate conditions for mortgage loans," says Benjamin Papo, CEO of Hüttig & Rompf AG.
The cost of financed properties fell by around 15 percent, regardless of the type of buyer. Although the monthly charges for newly concluded mortgage loans have risen overall, a slight decline in monthly charges has been observed in the last three months. At the same time, the capital requirements of many banks have increased. Today, potential property buyers and prospective homebuyers have to make more precise calculations and increasingly require specialist advice on financing.
According to Hüttig & Rompf, government support measures are urgently needed to enable a broader range of buyers to acquire private residential property. According to Benjamin Papo, a broad package of measures, including the reintroduction of a home ownership allowance and the tax deductibility of mortgage interest, would be desirable. He predicts that the ECB may have to raise interest rates further in view of persistent inflation.
Source and further information: huettig-rompf.de
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