The variable interest rate on mortgage loans went up to 4.67% in August 2023. That’s an increase of seven basis points on a monthly basis and an increase of 331 basis points on a yearly basis, according to Luxembourg’s central bank, the BCL. Photo: Romain Gamba/Maison Moderne (archives)

The variable interest rate on mortgage loans went up to 4.67% in August 2023. That’s an increase of seven basis points on a monthly basis and an increase of 331 basis points on a yearly basis, according to Luxembourg’s central bank, the BCL. Photo: Romain Gamba/Maison Moderne (archives)

The variable interest rate on mortgage loans for households went up by seven basis points to reach 4.67% in August 2023, said the Central Bank of Luxembourg on Thursday. Fixed interest rates went up one basis point to reach 3.80%.

The variable interest rate on mortgage loans granted to households went up to 4.67% in August, said Luxembourg’s central bank (BCL) in a published on 12 October. This is an increase of seven basis points on a monthly basis (up from 4.60% in July 2023). The variable interest rate, on a yearly basis, has gone up by 331 basis points (it stood at 1.36% in August 2022).

The fixed interest rate on mortgage loans granted to households went up by one basis point to reach 3.80% in August 2023. This rate has gone up by 99 basis points on a yearly basis, said the BCL in its press release.

Volume of loans

The volume of newly granted mortgage loans with a variable interest rate dropped from €224m in July to €190m in August, noted the central bank. The volume for this type of loan is down by €96m on a yearly basis.

The volume of newly granted mortgage loans with a fixed interest rate declined by €53m on a monthly basis to reach €235m in August 2023. On a yearly basis, the volume of these loans went by by €17m.

Interest rates for non-financial corporations

The variable interest rate on loans below or equal to €1m granted to non-financial corporations (NFCs) went up by 39 basis points in August to reach 4.79%, said the BCL. On the other hand, the variable interest rate on loans above €1m went down 30 basis points to 2.81% in August.

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