Between October and November 2022, the fixed interest rate for mortgages increased 17 basis points, from 3.16% to 3.33%, while the volume of new loans decreased by €47m to reach €269m.
On a yearly basis, the fixed interest rate for mortgage loans has increased by 199 basis points--from 1.34% to 3.33% in November 2022. The volume of newly granted loans decreased by €180m over the same time period.
This fixed interest rate was weighted by the amounts of contracts for all mortgage loans granted, whatever the initial rate fixation period (above one year), and is computed based on a sample of banks, noted the BCL. The indicated rate is an average rate weighted on the volumes of granted loans.
BCL data on fixed interest rates for mortgage loans is available from January 2012, when fixed interest rates were 4.04% (over one and up to five years initial rate fixation), 3.16% (over five and up to 10 years rate fixation) and 2.75% (over 10 years initial rate fixation). These rates then decreased over the following months. Current fixed interest rates are the highest they have been since April 2012.
Variable interest rates for mortgages
The variable interest rate for mortgage loans granted to households also increased. In November 2022, it was 2.5%--up from 2.26% in October 2022 and up from 1.3% in November 2021. The volume of these newly granted loans reached €287m in November 2022, down from €386m in October but up from €259m the year before.
More BCL data on variable interest rates is available for previous years. During 2008, for example, loans with floating rates and up to one year initial rate fixation went as high as 5.22% (August 2008). The following year, in August 2009, the floating interest rate was 2.01%.
In 2021, the floating interest rate remained around 1.3% during the whole year (ranging from 1.28% to 1.35%).
Consumer loans and fixed-term deposits
The interest rate on consumer loans that have an initial fixation period above one year and below or equal to five years increased by 63 basis points between October and November to reach 4.21% in November 2022, reported the BCL. The volume of newly granted loans decreased from €26m in October to €22m in November.
The interest rate on households’ fixed-term deposits that have an initial maturity below or equal to one year reached 127 basis points in November 2022, up from 93 basis points in October 2022. On a yearly basis, this rate has increased by 122 basis points.