Trends show interest rates are yet to improve in Luxembourg. In June, borrowing conditions negotiated between residents and the country's banks deteriorated slightly.
Variable rates remain the most advantageous, but they have stagnated at the same levels for a year. In June, the average rate obtained by individuals for purchasing a home was 3.19%, the highest it has been since June 2025. Under these conditions, a loan of €700,000 spread over 25 years would equate to a monthly payment of approximately €3,389.
Fixed interest rates are continuing their upward spiral, rapidly approaching the 4% threshold. In June, buyers negotiated a fixed rate of 3.94% with banks for loans with an average term of at least 10 years. Overall, fixed rates have been steadily increasing since December 2024. Under these conditions, a €700,000 loan spread over 25 years would result in a monthly payment of approximately €3,672.
The average rate of consumer credit is stable but still above 5%: in June, it was 5.08% for a loan of less than five years.
