Variable mortgage interest rates were down from a national average of 1.51% in April to 1.49% at the end of May 2019, according to Luxembourg’s central bank, the BCL. The rate was 1.57% the year prior. The BCL said “the volume of these newly granted loans has increased by €15m to reach €259m”.

Fixed mortgage interest rates have “barely changed, standing at 1.71% in May 2019” although the rate was an average of 1.93% the previous year. “The volume of these newly granted loans has increased by €21m a monthly basis and has consequently amounted to €343m” in May 2019.

The BCL released the figures on 12 July.

In recent months, both the IMF and OECD have warned that Luxembourg households and banks are heavily exposed to mortgage debt, which could create a liquidity crunch if the economy slows dramatically. Late last year, Moody’s said that debt was manageable.