Munich – October 29, 2026 -- Home buyers in the euro area should not expect cheaper or pricier mortgages right away: the European Central Bank (ECB) held its key interest rate at 2.5 percent, and ten-year building loan rates recently stood at around 4.4 percent.

Mortgage rates follow capital markets, not the ECB directly

Building loan rates track long-term capital market rates more closely than the ECB's key rate. Expected central bank moves can therefore already be priced into loan terms before the ECB announces a decision.