Mortgage rates average 4.46% in Germany after ECB rate increase

Mortgage rates have continued to climb across the eurozone's four largest economies since August. Fixed rates now range from approximately 2.2% in Spain to an average of 4.46% in Germany, though terms differ between offers and comparisons are not direct. The European Central Bank's latest interest-rate increase was largely priced into mortgage deals before the announcement. In France, Italy, and Spain, banks had already anticipated the decision. German rates instead followed ten-year government bond yields more closely. Prior to this rise, sovereign bond yields increased sharply in August, feeding into borrowing costs in Germany and Italy. French mortgage rates rose by 10 basis points in early September, moving the average rate on a new 20-year fixed mortgage from 3.44% in August to around 3.54%. Pierre Chapon of Pretto broker stated that banks could raise rates again before the central bank's next meeting due to continuing inflation trends.