Fifth ECB Rate Cut, January 2025

Q: Is 2.75% likely to be the bottom of this rate cycle?

There is no way to know in advance. The ECB has repeatedly said further moves depend on incoming data, so treat 2.75% as the current level rather than a floor or a ceiling.

Q: Why did the dollar weaken against the euro in early 2025 even as the ECB kept cutting?

Exchange rates reflect many factors beyond a single central bank's rate path, including relative growth expectations, trade policy and broader market sentiment. A US buyer should track the actual EUR/USD rate rather than assuming ECB cuts alone determine the dollar's direction.

Five cuts and counting

January 2025's move was the fifth consecutive ECB rate cut since the easing cycle began in June 2024, bringing the deposit rate down to 2.75% from the 4% peak reached in September 2023. The consistency of the moves — cut after cut without a reversal — has given lenders more confidence to reprice products than a single isolated cut would.

What 2.75% means for Greek mortgage pricing

Non-resident lending terms have continued to ease alongside this run of cuts, though loan-to-value limits and affordability standards for US buyers remain in place regardless of the rate level. A lower reference rate improves the numbers, not the underlying eligibility criteria.

The currency story starts to shift

Just as this cut landed, the dollar began weakening against the euro in a move that would continue through much of 2025. A run of ECB cuts does not automatically translate into a cheaper euro purchase in dollar terms if the currency moves the other way at the same time — the two effects can offset each other for a US buyer's actual budget.

Comparing this cycle to 2023

Buyers who were priced out or hesitant during the 2023 peak now face a meaningfully different rate environment, even if currency movements complicate the full picture. It's worth re-running a mortgage scan rather than assuming 2023-era figures still apply.

What to watch through the rest of 2025

Both further ECB moves and the EUR/USD rate are worth tracking together, since either can materially change the practical cost of a Greek purchase for a US buyer. Treat any single data point, including this one, as part of an evolving picture rather than a fixed conclusion.

What to do next

Get a mortgage scan reflecting the 2.75% environment.
Check the current EUR/USD rate, not the rate from a year ago.
Revisit a purchase you paused during the 2023 peak.
Track both ECB decisions and currency movements going forward.
Confirm underwriting standards haven't loosened alongside the rate.

Questions US buyers ask

Is 2.75% likely to be the bottom of this rate cycle?

Why did the dollar weaken against the euro in early 2025 even as the ECB kept cutting?

Continue your Greek property research

Bas Terpstra
Writes about cross-border mortgage preparation and the practical finance questions facing US residents buying property in Greece.

This guide is general information, not personal financial, legal, tax or currency advice. Mortgage availability is subject to credit, income, valuation and lender criteria.