In general, the change in interest rates from one month to the next is very small. Although the figures from the Banque Centrale du Luxembourg are always published with a delay of one to two months, they reflect the current market situation quite well and therefore allow you to estimate whether your interest rate corresponds to the current market situation or not.
|Duration of the fixed interest period||March
|Variable interest rate and initial fixed interest rate for 1 year or less||1,30 %||-0,05 %|
|Initial fixed interest rate for more than 1 year up to and including 5 years||0,99 %||-0,07%|
|Initial fixed interest rate for more than 5 years up to and including 10 years||1,09 %||-0,01 %|
|Initial fixed interest rate for more than 10 years||1,31 %||+0,03 %|
According to the latest figures from Banque Centrale du Luxembourg dated May 6, 2021, the variable interest rates for real estate loans and the interest rates fixed for short terms of up to 10 years have decreased compared to the previous month. The variable interest rates fixed for up to one year are currently 1.30% on average. The fixed interest rates for short terms between 1 and 5 years fell to 0.99%, which corresponds to a decrease of 0.07% compared to the previous month. The rates set for an initial term of between 5 and 10 years have fallen to 1.09%. On the other hand, the average of the fixed interest rates for terms of 10 years and longer continues to rise. These rates rose to an average of 1.31%. This corresponds to an increase of 0.05% within the last three months. Despite the current Corona crisis, interest rates in Luxembourg generally remain at a historically low level. Compared to the previous year, most interest rates fell slightly over the last 12 months. As the figures from the Luxembourg central bank show, the corona crisis did not lead to a general rise in interest rates. Viewed over the whole of 2020 and the first quarter of 2021, the interest rate changes were very small. Interest rates were largely stable throughout the crisis.
Chart based on data published by Banque Centrale du Luxembourg in may 2021