Mortgage interest rates in Luxembourg saw marginal decreases in May, with the Luxembourg Central Bank (BCL) reporting a slight dip in both variable and fixed rates, indicating stable but not significantly improved borrowing conditions for homebuyers.

The decline in mortgage interest rates remains modest in Luxembourg. According to the Luxembourg Central Bank (BCL), which has just released the latest figures for loans opened in May, terms were not significantly more favourable than those in previous months.

The BCL report indicates that homebuyers secured an average variable rate of 4.81% in May, a slight decrease from the 4.84% recorded in April. Fixed-rate mortgages showed a similar trend, with buyers facing an average rate of 3.65% for loans exceeding ten years, compared to 3.64% in April.

While borrowing conditions appear to be stabilising, property market experts predict an end to the decline in housing prices in Luxembourg. "Markets globally are rebounding, despite prevailing interest rates… The drop in prices for existing properties is over", stated Pierre Clément, director of real estate agency Nexvia, in a recent interview with our colleagues from RTL Infos.

In contrast, consumer loans with terms between one and five years experienced an increase, rising from 4.70% in April to 4.80% in May.