Eurozone mortgage rates
The average interest rate on new mortgages in the euro area was 3.60% in August 2026. It rose from 3.52% the previous month. A year earlier it was 3.33%. Over the period shown it has ranged from 1.30% to 4.06%.
What this rate is
- The average interest rate that banks in the euro area agreed with households on new loans for house purchase in August 2026, weighted by loan volume across all initial rate fixation periods, from floating to fixed for over ten years.
- It includes renegotiated loans and excludes fees and other charges.
- The ECB publishes it on the 23rd working day after the month ends.
- It is not a rate you can be offered today, not a 10-year fixed rate and not what existing borrowers pay.
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Mortgage rates and the ECB
In August 2026 the ECB deposit facility rate was 2.25%; the average rate on new mortgages was 1.35 percentage points above it. The 10-year government bond yield for the euro area was 3.60% in the same month.
The ECB has since set the deposit facility rate at 2.50%, effective 16 September 2026; this figure does not yet reflect that change.
From its low of 1.30% (June 2021) to its peak of 4.06% (November 2023), the average rate on new mortgages in the euro area rose 2.76 percentage points. Over the same cycle the ECB raised its deposit facility rate from -0.50% to 4.00% (July 2022 to September 2023).
The ECB does not set mortgage rates: banks do. The ECB collects these statistics to track how its policy reaches borrowers.
In August 2026, 16.6% of new mortgage lending in the euro area was at a floating rate or fixed for up to one year; the rest was fixed for longer. Most new loans lock in their rate for more than a year, so ECB decisions pass through more slowly, and existing fixed-rate borrowers are unaffected until their fixation period ends.
The euro area mortgage rate — frequently asked questions
- What is the average mortgage rate in the euro area?
- 3.60% in August 2026: the average rate banks agreed with households on new home loans, across all fixation periods.
- Is this the mortgage rate I would be offered today?
- No. It is an average of rates already agreed in August 2026, published about five weeks after that month ended. Offers depend on the bank, the fixation period and the borrower, and advertised rates can differ from agreed ones.
- Are mortgage rates in the euro area rising or falling?
- It rose from 3.52% to 3.60% in the latest reading (August 2026). A year earlier it was 3.33%.
- Are mortgages in the euro area mostly fixed or variable?
- In August 2026, 16.6% of new mortgage lending in the euro area was at a floating rate or fixed for up to one year; the rest was fixed for longer. Most new loans lock in their rate for more than a year, so ECB decisions pass through more slowly, and existing fixed-rate borrowers are unaffected until their fixation period ends.
- How do ECB interest rate decisions affect mortgage rates in the euro area?
- From its low of 1.30% (June 2021) to its peak of 4.06% (November 2023), the average rate on new mortgages in the euro area rose 2.76 percentage points. Over the same cycle the ECB raised its deposit facility rate from -0.50% to 4.00% (July 2022 to September 2023). In August 2026 the ECB deposit facility rate was 2.25%; the average rate on new mortgages was 1.35 percentage points above it. The ECB has since set the deposit facility rate at 2.50%, effective 16 September 2026; this figure does not yet reflect that change.