Italy: mortgages requests to the top

+51.3% increase in requests compared to the same month last year (due to lower interest rates)

The ECB cuts rates

At the end of January, the ECB Governing Council decided once again to cut the three key interest rates for monetary policy (interest rates on main refinancing operations, marginal lending facilities, and deposits) by 25 basis points. This signals that the disinflationary process is well underway and that inflation continues to evolve in line with projections and should return to the Governing Council's 2% target in the medium term.

The fall of interest rates on new mortgages

The rate on new loans to households for house purchases fell to 3.09% from 3.11% in December 2024. This reduction led to a significant increase in applications in January 2025 alone: +35.6% compared to the previous month (according to Experian's Credit Report).

Where are most mortgages being requested?

Central Italy accounts for the largest market share (27.8% of total applications), followed by the South (25.8%). However, the North East shows the most significant annual growth, with +65.9% compared to January 2024.

Comparing January 2025 and January 2024, in terms of growth in demand among large cities, Naples ranks first (+101.9%), followed by Venice (+53.6%), Bologna (+64.7%), and Rome (+60.4%). Milan, on the other hand, remains below the national average.

Who does apply most for mortgages?

Millennials (aged 35-45) are the main driving force behind the mortgage market, accounting for 53.4% of total applications in January 2025. However, applications from Generation Z (under 30) are also up on the previous year (January 2025 vs. January 2024), with an increase of +69.4%.

The new rate cut has certainly rekindled confidence, prompting more and more people, including many younger people, to buy a home and invest in their future. The trend is positive, but it is still too early to take stock. Much will also depend on the ECB's upcoming decisions.