Mortgages, average rates down to 3.25%

A new decline in mortgage costs. In September 2025, the average rate on new home purchase transactions fell to 3.25 per cent (it stood at 3.28 per cent in the previous month; at 4.42 per cent in December 2023), reports the October Abi monthly report. An improvement in lending conditions for home purchases that goes hand in hand with an overall growth in loans for households and businesses

In September 2025, the amount of loans to businesses and households grew by 1.8% compared to a year earlier, accelerating from +1.6% in the previous month. This was reported in the October ABI monthly report. In August 2025, the report emphasised, loans to households had grown by 2.0% and those to businesses by 1.2%. For households, this is the ninth consecutive month in which an increase was recorded and for businesses, it is the third consecutive month in which loans grew.

As of August 2025, net impaired loans (i.e. the total of non-performing loans, probable defaults and exposures past due and/or in arrears calculated net of write-downs and provisions already made by banks) decreased to EUR 29.3 billion, from EUR 30.2 billion in March 2025 (they stood at EUR 31.3 billion in December 2024). Compared to their peak level, EUR 196.3 billion reached in 2015, they are down by EUR 167 billion.

Finally, the rate charged on new deposits with agreed maturity (i.e. certificates of deposit and time deposits) in September 2025 was 1.97%. In August, this rate was higher in Italy than the average rate for the euro area (Italy 2.00%; euro area 1.84%). Compared to June 2022, (the last month before the ECB rate hikes) when the rate was 0.29%, the increase was 168 basis points.