Germany mortgage rates rise to 4.09% in September 2026

Borrowing costs for new home loans in Germany went up again in September 2026. According to the Deutsche Bundesbank, the average interest rate charged by banks on new mortgage business, across all fixation periods, was 4.09% in September 2026. In August 2026 it was 4.01%. Housing Market Group calculates this as a monthly increase of 0.08 percentage points, based on Bundesbank figures.

The September reading extends an upward move that started after a quiet early summer. Bundesbank data show the average rate at 3.93% in May 2026 and 3.95% in June 2026. It then eased slightly to 3.94% in July 2026 before climbing to 4.01% in August 2026 and 4.09% in September 2026. Between May and July the rate stayed within a narrow band, while the steps recorded in August and September were noticeably larger than the small shifts of the preceding months.

The comparison with a year earlier shows a bigger gap. The Bundesbank put the average rate on new bank mortgages at 3.74% in September 2025. By HMG's calculation from Bundesbank figures, the September 2026 rate is 0.35 percentage points higher than in September 2025. The annual increase is therefore considerably larger than the latest monthly change, indicating that the recent climb sits on top of a wider rise compared with the same month last year.

The series covers new lending by banks and combines all fixation periods into a combined average. It reflects the terms agreed on loans newly taken out in each month, not the rates paid on existing mortgages. Movements in the average can come from changes in how lenders price individual loan types, and also from changes in the mix of short and long fixation periods that borrowers select. The headline figure does not separate these effects, so it describes the overall cost of new bank borrowing rather than the price of any particular loan product.

Taken together, the Bundesbank figures show that German homebuyers taking out a new bank mortgage in September 2026 faced a higher average rate than in any other month covered by the available data, which span May 2026 to September 2026 along with the September 2025 comparison. The rate stood at 4.09% in September 2026, compared with 4.01% in August 2026, 3.94% in July 2026 and 3.74% in September 2025.