In November 2023, the variable interest rate for mortgage loans issued to households experienced a minor decline of one basis point, settling at 4.73%, according to data from the Central Bank of Luxembourg (BCL). This minor adjustment reflects a broader trend of stabilisation in the mortgage sector, with rates remaining between 4.7% and 4.8% over the previous five months. In contrast, interest rates for loans dedicated to household consumption maintained a robust growth, hitting 5.5% in the same month.

Despite the stability in interest rates, the total value of new mortgage loans saw a slight decrease, dipping by €4m to €360m in November 2023, according to the BCL’s report. This decline represents a significant year-on-year reduction in the volume of new loans, which fell by 35% from €556m recorded in November of the previous year.

On the deposit front, there was a slight uptick in interest rates for deposits with an agreed maturity of up to one year. These rates inched up from 3.22% in October to 3.31% in November. However, this increase in rates did not translate to a rise in the total volume of deposits, which instead decreased from €4.306bn to €4.171bn on a month-to-month basis.