Mortgage lending: contrasting banking strategies in May and a competitive situation that offers opportunities for borrowers

On the banking side, strategies diverge: some institutions are cautiously raising their rates, while others are reversing course and significantly lowering their prices to remain competitive. For borrowers, the credit market remains active and negotiable, with banks continuing to offer tailored solutions.

According to Pretto's data, the average rates observed in May were as follows:

• 3,27% over 15 years
• 3,42% over 20 years
• 3,50% over 25 years

National rates in May 2026:

Banks with contrasting strategies, ranging from caution to recovery

The month of May highlighted contrasting trends among banks. Some institutions opted for caution, such as Crédit Agricole Île-de-France, which raised its rates by 0,10 points. Conversely, CCF reversed course. After having revised its rates upwards in previous weeks, the bank announced a substantial decrease, ranging from 0,10 to 0,25 points depending on the borrower's profile. This move almost entirely offset its previous increase.

This fluctuating interest rate structure reflects a reality that is rather favorable to borrowers: banks fine-tune their rates, and those that have gained an advantage quickly catch up when they want to regain market share. Competition between institutions remains fierce, and the disparities between different borrower profiles make comparison more important than ever.

For Pierre Chapon, CEO and co-founder of Pretto: "The fluctuation we see in the rates, particularly at CCF, clearly illustrates the current market: a mortgage market very closely controlled by banks, which can quickly re-enter the market when they want to attract loan applications. For borrowers, this isn't a negative signal; it's quite the opposite. But it does mean that you have to compare offers, and compare at the right time."

10-year French government bonds (OATs) stabilized, markets divided

Following the tensions of April, the 10-year French government bond (OAT) yield, which serves as a benchmark for bank financing conditions, is currently holding steady around 3,68%. However, this stability does not reflect market sentiment, which remains divided.

In the United States, the stock market is showing remarkable resilience, with rapid price movements reflecting genuine investor nervousness. The prevailing scenario remains a return to normalcy, with an expected resolution to the crisis between the United States and Iran.

In Europe, the picture is more mixed. The main difference lies in the disconnect between equity and bond markets. The latter, more cautious, anticipate an inflation shock and several successive increases in the European Central Bank's key interest rates. Some analysts are even suggesting up to three consecutive hikes.

For Pierre Chapon, CEO and co-founder of Pretto: “We are seeing a marked difference between equity markets, which are anticipating a return to normal, and bond markets, which remain cautious in the face of a possible inflation shock. As brokers, we hope that the lessons of the 2022 crisis have been learned, and that the ECB will be able to avoid a cycle of sharp rate hikes that would weigh on growth and household purchasing power. Uncertainty remains a real concern, and this is what is prompting borrowers who are already prepared to secure their terms rather than wait for a signal that may never come.”

What impact on borrowing capacity?

To concretely measure the effects of the ongoing adjustments, let's take the example of a couple earning €4.000 net per month.

In April, with a 25-year mortgage rate of 3,52%, this couple could borrow €279.000 with a monthly payment of €1.400. If their rate rises to 3,62%, the slight increase applied by some institutions in May, their purchasing power will decrease by €3.000.

Another perspective, more relevant for a buyer who has already finalized their budget: this same couple is targeting a loan of €250.000. In April, at 3,52%, their monthly payment was €1.254. In May, at 3,62%, it rose to €1.268, an increase of €14. The difference remains small and is not enough to jeopardize their plans.

The message is therefore clear: despite the marginal adjustments applied by some banks, the concrete impact on households remains contained, and the relative stabilization observed on the OAT suggests that these variations will remain limited in the coming weeks.

The usury rate, the legal ceiling beyond which a loan can no longer be granted, is not currently a stumbling block. The current situation is nothing like the credit crisis of 2022 and 2023, when this mechanism led to a portion of applications being excluded from the market.

Concrete example: a difference of €16.000 between 3 bank offers in May 2026

A couple with a net annual income of €74.000 wants to buy an older property in the Île-de-France region for €362.000, with a loan of €335.000 over 25 years. Thanks to Finspot, Pretto's scanner that queries the rate schedules of partner banks, three institutions were identified as suitable for this profile. Once the application was submitted to the banks, the rates obtained ranged from 3,20% to 3,50%, including 3,40%. This represents a difference of €16.000 in the cost of the loan and a significant saving for this couple.

It is this comparative work that constitutes the real added value of the broker in such a controlled market.

A market that remains favorable to well-prepared borrowers

May 2026 confirms the resilience of the mortgage market. Rates are stabilizing, banks remain active, and the disparities between institutions offer real potential for negotiation. However, the environment remains volatile, and conflicting signals call for a more proactive approach rather than a wait-and-see attitude. As in April, a strong application and good timing continue to make all the difference.

Illustrative image of the article via Depositphotos.com.