Luxembourg banks issued €479m in mortgage loans in June 2024, a slight decrease from €482m in May and €488m in April, latest data from the Luxembourg Central Bank (BCL) shows. One likely reason for this marginal decline is the stable interest rates, which have remained around 4.8% over these three months. These rates were compiled from 73 reporting banks in Luxembourg.

In terms of growth rates, June continued the trend observed in May with a 3.4% drop in loan volume compared to the same period last year. This ongoing decline suggests that there is potential for further growth in the housing loan market if conditions--especially interest rates--improve. An year ago, average housing loan interest rates were 4.58%.

It is also noteworthy that the total outstanding loans for home purchases amounted to €41.074bn as of the end of June 2024. This figure is slightly lower than the €41.464bn recorded a year earlier. This decrease suggests that homeowners have repaid more to banks than they have borrowed over the past 12 months, indicating a trend of net reduction in outstanding mortgage balances.