Central Bank of Luxembourg reports mixed May lending rates with corporate borrowing costs up and household variable mortgage rates slightly lower

The Central Bank of Luxembourg published provisional May 2026 data on average interest rates and volumes for new loan and deposit contracts offered by Luxembourg credit institutions to households and non-financial corporations in the euro area. The main pattern was mixed across segments. Household variable-rate mortgage costs edged down, while fixed-rate mortgage and consumer credit rates increased. For companies, variable borrowing rates rose for both smaller and larger loans, and term deposit rates also moved higher for both households and non-financial corporations. For households, the variable rate on new mortgage loans fell 2 basis points to 3.10%, while new business dropped by EUR 34 million to EUR 212 million. Fixed mortgage rates increased across most initial fixation periods, including 21 basis points to 3.74% for loans fixed for more than one year and up to five years, and 10 basis points to 3.93% for loans fixed for more than five and up to 10 years. For loans fixed for more than 10 years, monthly volume fell to EUR 175 million and rates ranged from 3.58% to 3.99% depending on the fixation bucket. Consumer credit rates for initial fixation of more than one year and up to five years rose 24 basis points to 5.04%, while volume declined to EUR 22 million. The household term deposit rate with an initial maturity of up to one year increased to 1.60% from 1.58%. For non-financial corporations, the variable rate on new loans of up to EUR 1 million rose 29 basis points to 3.59%, with volume increasing to EUR 126 million. For loans above EUR 1 million, the rate climbed 44 basis points to 2.95% and new lending rose to EUR 2.724 billion from EUR 2.603 billion. The rate on corporate term deposits with an initial maturity of up to one year increased 7 basis points to 2.01%.