Bank of Italy reports rising mortgage rates and private credit growth

According to the “Banks and Money” report released by the Bank of Italy, mortgage costs for new home purchases rose to an average APR (TAEG) of 3.99% in August, up from 3.81% in July. This increase brings the cost of real estate credit close to the 4% threshold, marking a rise from previous months.

Private sector lending saw an annual increase of 3.7% in August. Loans to households grew by 2.9%, while loans to non-financial corporations increased by 4.2%. Conversely, consumer credit costs also rose, with the average APR climbing from 10.38% to 10.78%.

In contrast to rising mortgage and consumer costs, interest rates on new loans to non-financial companies decreased to 3.71% from 3.79%. For savers, returns remain low; the average rate on existing deposits held steady at 0.69%, while household current accounts yielded only 0.20%.