German 10-Year Mortgage Rates Near 4.5%, Highest Since 2009 on Iran War Inflation Fears

German mortgage rates have climbed to their highest level since the 2009 financial crisis, with the typical rate on a ten-year loan approaching 4.5%, Munich-based broker Interhyp said. The figure surpasses the previous peak of just over 4.4% reached at the end of 2023. The ten-year average has risen from 3.9% as recently as May, CEO Jörg Utecht said. Interhyp's October 15 lender survey put the average at about 4.4%, but it continues to climb. Utecht attributed the increase mainly to the Iran war and the inflation fears it has fueled. The ECB has raised rates twice this year, lifting its deposit rate to 2.5%. The recent increase adds almost €200 to monthly repayments on an average home loan, Utecht said. Bundesbank and ECB data confirm borrowing costs are at their highest since 2009. Despite the surge, Destatis data show German house prices rose 0.6% year on year in the second quarter, though new mortgage lending fell more than 1.5% between January and July. ING warned a meaningful rebound in housing demand appears unlikely near term. The ECB's next rate decision is due October 29.