The rapid increase in building interest rates has given the Landesbausparkasse Hessen-Thüringen a boom in building savings. Last year, 41,606 new home savings contracts with a total volume of a good 2.7 billion euros were concluded, LBS Hessen-Thüringen reported on Wednesday in Frankfurt. In terms of the number of contracts, this corresponds to an increase of 21 percent over the previous year and an increase of a good 45 percent in terms of building savings.
In the phase of low interest rates, new home savings contracts were rather unattractive. However, since the interest rate hike by the European Central Bank (ECB) last July, real estate loans have become significantly more expensive. "Builders and buyers want to protect their real estate financing against the risk of rising interest rates as best as possible," explained LBS Managing Director Stephen Adam the upswing.
According to the LBS, cities and municipalities are also increasingly getting into home savings. In times of rising loan interest rates, municipalities and municipal companies can thus secure long-term interest rates, for example for the renovation of a kindergarten, the construction of new schools, the purchase of a retirement home, the renovation of the electricity network or for sewer construction.
LBS Hessen-Thüringen looks after a total of around 580,000 customers with almost 657,000 home savings contracts. Together, the Landesbausparkassen account for around a third of home savings in Germany. The private institutes share the rest of the market.
Press page LBS Hessen-Thüringen Facts and figures on the LBS Hessen-Thüringen Landesbausparkassen on the balance sheet for 2022