According to the Luxembourg Central Bank (BCL), the volume of variable rate mortgages increased by €30m in June to €337m, compared with €307m in May. Over twelve months, the volume of new loans increased by €16m. While the one-month interest rate decreased by two basis points to 1.36%, the twelve-month increase was five basis points.
On the other hand, the fixed interest rate soared to 2.26% at the end of June. This represents an increase of 90 basis points over twelve months and 21 basis points over one month. Year-on-year, the amount of loans granted contracted by €170m to reach €382m at the end of June.
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For loans of more than 10 years, the rate rose by 87 basis points over twelve months, while the amount of loans granted contracted by €107m to €306m. At the end of June, the weighted average rate recorded by the BCL stood at 2.3%. For very long term loans--30 years and more--the BCL indicated that the fixed rates charged can be even higher.
For consumer loans with an initial rate-setting period of more than one year and up to five years, the average interest rate charged by banks in the marketplace was 2.95%, an increase of six basis points over one month and 29 basis points year-on-year. Over one month, the volume of activity increased by €2m to reach €31m. Year-on-year, business volume remained stable.
The data were recorded before the .
Originally published in French by and translated for Delano