For households, the average variable interest rate on new mortgage loans dropped slightly to 3.28%, down from 3.32% in May. Lending volumes rose significantly, reaching €405 million compared to €252 million the previous month.
Rates for fixed mortgages remained mostly stable, with some minor changes depending on the duration of the initial fixation period.
Consumer loans also saw a marginal decrease in interest rates, standing at 4.8%, while fixed-term deposit rates for households declined more noticeably to 1.46%.
On the corporate side, the average interest rate for smaller business loans (under €1 million) decreased to 3.45%, with volumes rising slightly. However, larger loans (over €1 million) saw a sharp increase in interest rates, reaching 2.60%, though this was accompanied by a surge in new lending volume to nearly €3 billion. Corporate fixed-term deposit rates also fell to 1.79%.
The BCL notes that all figures are based on averages from a representative sample of Luxembourg’s credit institutions.
