GLOPRAGlobal Property Radar

Euro area mortgage rates hold at 3.62% in September 2026

The euro area's cost of a new mortgage held at 3.62% in September, while one-year household deposits rose 20 basis points to 2.33%. The gap narrowed.

The facts

  • The composite cost of borrowing for new house-purchase loans was 3.62% in September, broadly unchanged on August.
  • Loans at a floating rate or with fixation up to one year stood at 3.89%, also broadly unchanged.
  • Fixation over one and up to five years rose by 4 basis points to 3.63%, which the release attributes mainly to a weight effect.
  • Fixation over five and up to ten years was broadly unchanged at 3.82%, and fixation over ten years stayed almost constant at 3.44%.
  • Household deposits with an agreed maturity up to one year paid 2.33%, 20 basis points more than in August, while overnight deposits held at 0.30% and deposits redeemable at three months' notice at 1.26%.
  • The composite cost of borrowing for companies moved the other way, up 13 basis points to 3.90%.

What it means for your money

  • Borrowing costs the same as in August. Fixing for more than ten years stays the cheapest choice at 3.44%.
  • Glopra's data for Spain, a euro-area market, shows $3,390 per square metre and asking rents of $17.50 per square metre a month, so a flat 3.62% leaves the rent-against-interest arithmetic where it stood.
  • A one-year household deposit now pays 2.33%. Every month that property prices stand still, that 20 basis point rise widens the return on simply holding cash instead.
  • An owner already paying a floating rate or a fixation of up to one year sits at the 3.89% average, 45 basis points above the 3.44% paid on fixation over ten years.

What to watch

  • The release incorporates revisions to earlier periods, so these averages can change when the next one is published.
  • Behind the 4 basis point rise in the one-to-five-year bucket is mainly a weight effect, meaning a shift in which loans were actually taken out rather than a repricing of the offers on the table.

Sources: European Central Bank https://www.ecb.europa.eu/press/stats/mfi/html/ecb.mir2611~2502265512.en.html