European Central Bank reports euro area corporate borrowing costs steady at 3.64% and mortgage rates up to 3.48%

The European Central Bank published its May 2026 euro area bank interest rate statistics, showing little change in borrowing costs for businesses but a modest rise for homebuyers. The composite cost-of-borrowing indicator for new loans to corporations was broadly unchanged at 3.64%, while the equivalent indicator for new loans to households for house purchase increased by 4 basis points to 3.48%. On the deposit side, composite rates on new deposits with agreed maturity increased to 2.04% for corporations and 1.96% for households, while overnight deposit rates were broadly unchanged at 0.53% and 0.27%, respectively. Within corporate lending, the rate on new loans above EUR 1 million with an initial rate fixation period of over three months and up to one year rose 7 basis points to 3.57%, while the rate on loans of the same size with a fixation period of over 10 years fell 14 basis points to 3.60%. The average rate on new loans of up to EUR 250,000 with a floating rate and an initial rate fixation period of up to three months increased 8 basis points to 3.78%. For households, housing loan rates rose across most shorter and medium fixation periods, reaching 3.60% for floating-rate loans and loans fixed for up to one year, 3.47% for over one and up to five years, and 3.65% for over five and up to 10 years, while rates for over 10 years were almost unchanged at 3.32%. The interest rate on new consumer loans to households remained broadly unchanged at 7.61%, and rates on deposits with an agreed maturity of up to one year rose to 2.03% for corporations and 1.91% for households. The release also incorporates revisions to data for previous periods.