Italy mortgage rates approach 4% threshold in August

In August, the average annual percentage rate (TAEG) for new home mortgages in Italy rose to 3.99%, up from 3.81% in July. This increase marks the highest level since August 2024. While the volume of new mortgages disbursed saw a significant decline to approximately 2 billion euros compared to nearly 8 billion euros in July, the demand for loans to families grew by 2.9% during the month.

Data from the Bank of Italy indicates that while most existing mortgages in Italy are fixed-rate, new borrowers are facing higher costs. Specifically, the TAEG for new consumer credit rose to 10.78%, up from 10.38% the previous month. Adusbef attributed the rising interest rates to broader economic pressures, including inflation and geopolitical tensions in the Middle East.

Market offers vary by type; according to MutuiOnline.it, the most competitive fixed-rate options for green mortgages stood at 3.10%, while standard fixed-rate options were at 3.40%. Variable-rate offers were notably lower, with green financing at 2.45% and traditional options at 2.92%.