The variable interest rate on mortgage loans granted to households went up to 4.74% in October, said Luxembourg’s central bank (BCL) in a  published on 20 December 2023. This is an increase of three basis points compared to September (when the rate stood at 4.71%). The variable interest rate, on a yearly basis, has gone up by 248 basis points (it was at 2.26% in October 2022).

The fixed interest rate--which is weighted by the amounts of contracts for all mortgage loans granted, whatever the initial rate fixation period (above 1 year)--went up 10 basis points compared to the month before to reach 4% in October 2023. On a yearly basis, this interest rate has increased by 84 basis points.

Volume of loans

The volume of newly granted loans with a variable interest rate decreased by €3m to reach €153m in October 2023, compared to €156m in September, the BCL said in its communiqué. On a yearly basis, the volume of newly granted loans with a variable interest rate has dropped by €233m (from €386m in October 2022).

The volume of newly granted loans with a fixed interest rate (over 1 year) has decreased by €58m to reach €211m in October 2023 (down from €268m in September). On a yearly basis, the volume of these newly granted loans has decreased by €105m (from €316m in October 2022).