Euro Zone Mortgage Demand Falls Sharply in Q3 as Interest Rates Rise, ECB Survey Shows

Demand for mortgages in the euro zone decreased significantly in the third quarter of 2026, according to a European Central Bank (ECB) survey reported by Reuters. A net 27% of banks reported a decline in housing loan demand, a more pronounced drop than anticipated. The primary drivers were rising interest rates, declining consumer confidence, and worsening housing market prospects. Banks also expect to tighten lending standards across all categories in the final quarter of the year.