Variable mortgage rates in Luxembourg dipped to 3.84% in February, marking the latest in a series of rate cuts that could reinvigorate the country's sluggish real estate sector, the BCL reported.

Interest rates on property loans in Luxembourg have continued to decline since the start of 2025, signalling a potential revival in the housing market after years of rising costs.

According to the Luxembourg Central Bank (BCL), the variable mortgage rate dropped further in February, falling to 3.84% from 3.88% in January. Fixed rates also decreased, moving from 3.39% to 3.31% over the same period.

The trend extends to consumer credit, where interest rates fell from 4.82% in December 2024 to 4% in recent data.

These reductions could restore confidence among homeowners and prospective buyers in Luxembourg's tense real estate market.