Mortgage interest rates in Italy decreased substantially between 2013 and 2021 before rising in the following years. As of the first quarter of 2025, the mortgage interest rates amounted to **** percent — lower than the rate in the same period in the previous year. A slowly recovering market Despite not reaching the pre-crisis levels, an increase in the number of transactions in the residential real estate market as well as the volume of mortgages stipulated for house purchase indicate a positive trend for the sector in Italy. Homeownership in Italy reached **** percent in 2021, one of the highest rates in Western Europe. Low interest rates, especially when compared to other European countries, and decreasing house prices led to a renewed interest in the real estate market in Italy. Milan, an attractive destination for investments In recent years, more than in the past, thanks to its role as a capital of business and finance as well as an innovation hub, Milan was able to attract human capital and investments, both domestic and foreign. This ability to grow and innovate was also reflected in the real estate market, which was the most dynamic in the country. Transactions in residential real estate in Milan increased steadily since 2012, except for 2020, and so did prices: some areas of the city are among the most expensive in the country to buy a property.

The mortgage interest rate for mortgages with initial fixed period rates up to one year in Italy decreased overall between 2011 and 2021, followed by a spike in 2022. In the first quarter of 2025, the rate stood at **** percent, down from **** percent in the fourth quarter of 2023, when rates peaked. In the same period, the gross residential mortgage lending in Italy fluctuated.

Mortgage credit interest rate, percent in Italy, September, 2025 The most recent value is 2.68 percent as of September 2025, an increase compared to the previous value of 2.67 percent. Historically, the average for Italy from January 1995 to September 2025 is 4.6 percent. The minimum of 1.59 percent was recorded in December 2021, while the maximum of 12.52 percent was reached in October 1995. | TheGlobalEconomy.com

View monthly updates and historical trends for Italy Long Term Interest Rate. Source: European Central Bank. Track economic data with YCharts analytics.

Bank Lending Rate in Italy increased to 3.94 percent in September from 3.88 percent in August of 2025. This dataset provides - Italy Bank Lending Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The mortgage interest rate for all maturities beyond ten years of the initial fixed period in Italy decreased overall between 2016 and 2021, followed by an increase in 2022. As of the fourth quarter of 2024, the average mortgage rate was **** percent.

Key information about Italy Bank Lending Rate

• Italy Bank Lending Rate was reported at 3.383 % pa in Sep 2025.
• This records a decrease from the previous number of 3.388 % pa for Aug 2025.
• Italy Bank Lending Rate data is updated monthly, averaging 1.977 % pa from Jan 1995 to Sep 2025, with 369 observations.
• The data reached an all-time high of 11.264 % pa in Aug 1995 and a record low of 1.049 % pa in Jul 2021.
• Italy Bank Lending Rate data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Bank Lending Rate: Monthly.

Mortgage interest rates in Italy decreased substantially between 2013 and 2021 before rising in the following years. As of the fourth quarter of 2024, the mortgage interest rates amounted to 3.11 percent — lower than the rate in the same period in the previous year. A slowly recovering market Despite not reaching the pre-crisis levels, an increase in the number of transactions in the residential real estate market as well as the volume of mortgages stipulated for house purchase indicate a positive trend for the sector in Italy. Homeownership in Italy reached 73.7 percent in 2021, one of the highest rates in Western Europe. Low interest rates, especially when compared to other European countries, and decreasing house prices led to a renewed interest in the real estate market in Italy. Milan, an attractive destination for investments In recent years, more than in the past, thanks to its role as a capital of business and finance as well as an innovation hub, Milan was able to attract human capital and investments, both domestic and foreign. This ability to grow and innovate was also reflected in the real estate market, which was the most dynamic in the country. Transactions in residential real estate in Milan increased steadily since 2012, except for 2020, and so did prices: some areas of the city are among the most expensive in the country to buy a property.

The Italian mortgage market has grown substantially since 2010, with the value of mortgages outstanding reaching around *** billion euros in the first quarter of 2025. In the period between 2020 and 2022, growth was stronger, fueled by low-interest rates. As the lending environment tightened, the market plateaued. Mortgage interest rates in Italy The mortgage interest rates in Italy decreased significantly, falling to record lows, before rising dramatically in 2022. The period of decline in mortgage interest rates probably helped revive the residential real estate market in the country, which suffered after the financial crisis of 2008. In fact, the number of transactions in the sector increased steadily since 2013. A regional overview In some areas of the country, the residential real estate market appears to be more dynamic than in others. In fact, in 2022, the North-West of Italy accounted for more than one third of all transactions in the sector. When looking closely at the single regions, Lombardy was the most active, with more than ******* transactions registered. The second most prolific market was found in the region of Lazio, which recorded approximately ** thousand transactions.

Actual value and historical data chart for Italy Lending Interest Rate Percent

The annual average interest rate on new residential loans in Italy rose to **** in 2023 - the highest rate recorded since 2009. In contrast, the lowest interest rate was observed in 2020, when it stood at **** percent.

Forecast: Bank Lending Interest Rate in Italy 2024 - 2028 Discover more data with ReportLinker!

Italy - Overcrowding rate: Owner, with mortgage or loan was 27.10% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Italy - Overcrowding rate: Owner, with mortgage or loan - last updated from the EUROSTAT on November of 2025. Historically, Italy - Overcrowding rate: Owner, with mortgage or loan reached a record high of 31.50% in December of 2018 and a record low of 24.30% in December of 2011.

Italy - Housing cost overburden rate: Owner, with mortgage or loan was 1.70% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Italy - Housing cost overburden rate: Owner, with mortgage or loan - last updated from the EUROSTAT on December of 2025. Historically, Italy - Housing cost overburden rate: Owner, with mortgage or loan reached a record high of 8.20% in December of 2009 and a record low of 1.60% in December of 2023.

In 2024, the average annual lending interest rate in Italy was **** percent. Between 1989 and 2024, the figure dropped by **** percentage points, though the decline followed an uneven course rather than a steady trajectory.

Italy - Severe housing deprivation rate: Owner, with mortgage or loan was 5.50% in December of 2023, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Italy - Severe housing deprivation rate: Owner, with mortgage or loan - last updated from the EUROSTAT on December of 2025. Historically, Italy - Severe housing deprivation rate: Owner, with mortgage or loan reached a record high of 9.70% in December of 2015 and a record low of 5.00% in December of 2008.

Italy IT: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data was reported at 3.337 % pa in 2017. This records a decrease from the previous number of 3.664 % pa for 2016. Italy IT: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data is updated yearly, averaging 3.300 % pa from Dec 1990 (Median) to 2017, with 28 observations. The data reached an all-time high of 4.443 % pa in 2014 and a record low of 1.813 % pa in 2011. Italy IT: Risk Premium on Lending: Lending Rate Minus Treasury Bill Rate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Italy – Table IT.World Bank.WDI: Interest Rates. Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the 'risk free' treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.; ; International Monetary Fund, International Financial Statistics database.; ;

View yearly updates and historical trends for Italy Lending Interest Rate. Source: World Bank. Track economic data with YCharts analytics.

The highest interest rate for mortgage-secured loans in Italy in 2024 was registered in Southern Italy. In comparison, in the North-East of Italy, the average interest rate of mortgage-backed loans for house purchases was lower at *****percent, making it the cheapest region to take out a mortgage loan. The interest rate is fixed on the date of signing of the deed of financing, as declared in the mortgage registrations, and applied for the first installment of the loan.

Risk premium on lending of Italy shot up by 49.56% from 1.31 % in 2023 to 1.95 % in 2024. Since the 44.83% drop in 2022, risk premium on lending soared by 40.92% in 2024. Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.