"Many positive signs" for the real estate credit sector according to the Banque de France

The ECB's rate cut "has a number of positive consequences on real estate credit" and "on purchasing power," he stressed on Radio Classique.

The European Central Bank continued its policy of easing interest rates on Thursday by lowering its main interest rate by 0,25 percentage points as expected.

In January, average interest rates on new mortgages stabilized at 3,32% after 3,30% in December, remaining at a much lower level than a year ago, and new mortgages (excluding renegotiations) reached 9,9 billion euros, according to figures from the Banque de France.

This amount "is roughly the average we have had since last spring, when mortgage credit turned positive and the French started borrowing again."

The volume of new mortgage loans fell to its lowest point last year since 2014, according to the Banque de France, in a market stuck between high rates and prices, before recovering in the spring and even more in the fall.

"The combination of lower rates and an erosion of real estate prices has given buyers more purchasing power," broker Cafpi said this week. "Indeed, while in 2023, an acquisition represented five years of income, it now only represents four in 2025, facilitating access to property ownership," he added.

At Meilleurtaux, too, the recovery is being highlighted. "We are really in a recovery scenario where demand has returned. January 2025 is the best month in three years, with nearly 55.000 requests" for real estate loans, Maël Bernier, the broker's communications director, told the press this week.

Brokers also welcome two measures that will support the market: the extension from April 1 to the entire territory and to houses of the zero-rate loan (PTZ), a support system for home ownership offered to first-time buyers until now in tense areas and for apartments; the absence of the increase in notary fees for first-time buyers.

Illustrative image of the article via Depositphotos.com.