What’s causing the interest rate hike?
Let’s start with the current interest rate: the average interest rate for a 10-year mortgage with an NHG (national mortgage guarantee) is currently around the 3.6% mark. At the beginning of January, this interest rate was still around 1%, which, admittedly, is an unprecedentedly huge increase. However, if you look at it from a historical point of view, the interest rate is climbing back towards the average of the past decades.
The fixed mortgage rate depends on the long-term interest rate (10, 15 or 20 years) on the capital market, with inflation playing a major role in this regard. In order to borrow money, banks buy money from investors. These money lenders take inflation and expected monetary depreciation into account, and utilise it to determine the fee (the interest) they charge for lending their capital. If inflation is low, they can demand a low fee; if inflation is high, they will usually opt for a higher interest rate to compensate. Currently, partly due to rising energy prices, the war in Ukraine, and the aftermath of the Covid crisis, inflation is high. As a result, it costs banks more to be able to borrow money. This is passed on to consumers through interest rates, resulting in higher mortgage interest rates.
View the current interest rates