While prices on the country’s real estate market continue to soar, interest rates on loans have in fact never been so low.
In April, the Luxembourg Central Bank noted a slight rebound in fixed and variable rates compared to the previous month, even though their volume decreased.
Thus, the average variable interest rate granted for a property purchase stood at 1.35% in April. It is relatively stable and was estimated at 1.30% in March, 1.35% in February, 1.35% in January 2021 and 1.32% in December 2020.
The average fixed rate was 1.31% in April 2021. This is a slight increase from the estimated 1.25% in February and 1.21% in December 2020.
The data from the Luxembourg Central Bank nevertheless suggests a rather favourable dynamic for households: apart from small monthly fluctuations, fixed and variable rates have been on a clear downward trend for several years.
Finally, on consumer loans with a duration of one to five years, the average rate was calculated to be around 2.14%.
