According to the latest figures from the Banque centrale du Luxembourg (BCL), the variable interest rate on home loans granted to households is now 3.53%. Over one year, the rate has risen by 221 basis points, while the volume of new contracts has fallen by €27m. The fixed interest rate reached 3.77%. Year-on-year, the rate rose by 226 basis points while the amount of loans granted fell by €212m.

Home loans with an initial rate fixation of over 10 years rose by 17 basis points to 3.77% in February 2023. Year-on-year, the rate rose by 219 basis points, while the amount of loans granted fell by €146m.

Business volumes on the decline

While mortgage rates remained on the rise in February, the interest rate on consumer loans fell by 21 basis points between January and February to stand at 3.82% in February 2023, while the volume of activity rose by €23m, from €31m in January to €54m in February. On an annual basis, the interest rate increased by 228 basis points while the volume of activity decreased by €24m.

On the business credit side, for the rate on loans up to €1m, the increase over one year is 235 basis points for a rate of 3.69%. In one month, the volume of these newly granted credits increased by €93m to reach €601m in February. However, over one year, the amount decreased by €174m.

For loans of more than €1m, the interest rate increased by 192 basis points over one year to 2.91%, while the amount of loans granted decreased by €596m over the period.

This story was first published in French on . It has been translated and edited for Delano.