Buyers still facing high mortgage rates in Luxembourg

Mortgage rates remained high in early 2024 in Luxembourg, according to data released by the Central Bank of Luxembourg. 
In the first months of the year, the average rate granted to buy a home in Luxembourg was almost at its highest level:

• for a variable rate loan, the average rate obtained by a buyer was 4.91% in January,
• for a fixed rate loan, residents were able to negotiate a loan at 4.24% .

The BCL noted a change in rates dependent on the duration of the loan, dropping from 4.24% for a fixed rate of maximum 5 years,  to 3.46% for 15-20 years. However, the rate rises to 3.74% for mortgages between 25 and 30 years.

Housing remains the main concern for Luxembourgers, according to the most recent Politmonitor survey, published last week, as affordability rises to extremes: in order to purchase a 1.5 million euro house, you would need to earn 5-6 times the minimum wage.

However, experts say the next few months could see a recovery in the market, with prices expected to drop slightly.