Rising interest rates continue to make life difficult for Luxembourg’s residents. According to the Luxembourg Central Bank (BCL), the cost of property loans rose again in February.
The BCL report indicates that banks issued variable rates averaging 3.53% for the purchase of a home, up from 3.51% in January. Variable rates have therefore stayed relatively stable at the start of the year.
The fixed rate on real estate loans, on the other hand, has risen sharply to 3.77%, and even considerably more on loans with extended time frame terms, such as 30 years.
The rise in property loan interest rates coincides with a widespread drop in property prices, “the peak of which has been reached.”
The average rate for a consumer loan in February was estimated at 3.82%.
