As feared by many Luxembourgish residents, fixed mortgage rates continued to rise during the summer.

How high will they go? Real estate loan rates have been steadily rising since the beginning of the year. Particularly for fixed-rate loans.

While the fixed rate was still at 1.3% a year ago, it has nearly doubled since then. In July, the Luxembourg Central Bank (BCL) estimated the average fixed rate for new property loans at 2.56%. Over longer periods, such as 30 years, loan rates can be "significantly higher" than this average rate, the BCL warns.

This substantial increase contrasts with the variable rate, which has remained stable: 1.34% on average for new loans in July. In addition, it has not exceeded 1.43% since January 2020.

Can this phenomenon last? In August, atHome confirmed that it expected variable rates to rise in the coming weeks. Meanwhile, fixed rates are expected to fall.