Mortgage interest rates and price correlation

Euribor 12 months fell from 4.0% to 3.1% in the second half of 2024. We analyse its impact on residential price levels and buyer demand. Early data suggests that every 50 basis points decline brings approximately 3–4% demand growth. The improvement in loan accessibility particularly supports the medium-price segment (200–350k €). At the same time, the supply side faces pressure from the rental market — rental yield of 4.5–6.5% keeps some sellers on the sidelines.