High Mortgage Rates Continue to Challenge Buyers in Luxembourg
Despite market fluctuations, buyers in Luxembourg are still grappling with high mortgage rates. Stay informed on the latest trends.
In the early months of 2024, potential homebuyers in Luxembourg continue to face high mortgage rates, according to data from the Central Bank of Luxembourg. The average rate for purchasing a home in the Grand Duchy remains near its peak, with variable rate loans averaging 4.91% in January and fixed rate loans at 4.24%. The BCL observed a variation in rates based on the loan duration, ranging from 4.24% for fixed rates up to 5 years to 3.46% for 15-20 year loans, but increasing to 3.74% for mortgages spanning 25-30 years.
Despite these high rates, housing affordability remains a pressing issue for Luxembourgers, as highlighted in the recent Politmonitor survey. The survey revealed that in order to afford a 1.5 million euro home, an individual would need to earn 5-6 times the minimum wage. This disparity between income and housing costs has put significant strain on residents looking to enter the property market.
However, there is hope on the horizon as experts predict a potential market recovery in the coming months, with prices expected to see a slight decrease. This anticipated shift could provide some relief to prospective buyers who have been grappling with the challenges of high mortgage rates and soaring property prices.
The property market in Luxembourg continues to present challenges for buyers, with high mortgage rates and affordability issues persisting. However, the potential for a market recovery in the near future offers a glimmer of hope for those looking to purchase property in the Grand Duchy.
High Mortgage Rates Continue to Challenge Buyers in Luxembourg
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