"Trumpflation": Mortgage loans as expensive as since 2009 not more
The Iran war initiated by US President Donald Trump is driving inflation, and in its wake, interest rates on loans. Homebuyers and housing construction are feeling the negative consequences.
Germany's housing market is experiencing a downturn due to rising interest rates, with mortgage rates reaching 4.5% for 10-year loans, the highest since 2009. Interhyp CEO Jörg Utecht attributes the increase to the recent Iran conflict and subsequent inflation concerns, which led the European Central Bank to raise interest rates.
As a result, homebuyers are facing higher monthly payments, with a typical financing scenario increasing by almost €200 per month. The trend is affecting not only potential homebuyers but also the construction industry, with a reported 3.2% decline in building orders in Bavaria as of July 2026.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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- "Trumpflation": Mortgage loans as expensive as since 2009 not more handelsblatt.com
