Interest rates on mortgage loans in Luxembourg have fallen
Luxtoday
Luxembourg Finance Minister Gilles Roth has responded to a parliamentary enquiry by MP Laurent Mosar related to the impact of the European Central Bank's (ECB) key rate cut on mortgage interest rates. Following the ECB's emergency key rate hike in the summer of 2022, the credit situation in Luxembourg deteriorated sharply. This also affected the property sector, which was already in crisis.
The minister noted that mortgage rates for households have fallen slightly in recent months, according to data from the Central Bank of Luxembourg:
- The August 2024 rate was 4.48%, down 1 basis point from July.
- In September, the rate fell another 3 basis points to 4.45%.
Gilles Roth also emphasised that individual rates may vary depending on the offers and conditions of specific banks. The government does not interfere in the commercial policy of banks.
Perhaps, lowering the mortgage rate can attract new buyers, which in turn will stimulate the construction sector. However, the demand for loans alone is not enough, so the government needs the industry.
