Mortgage lending rebounded sharply in March

The mortgage market continues its recovery momentum in France. According to the latest data published by the Bank of France, the amounts of new mortgage loans granted in March 2026 increased by nearly 9% month-on-month, confirming a continued improvement in banking activity and household demand.

A €1 billion increase in new mortgage loans

In March 2026, the total volume of new mortgage loans granted, excluding renegotiations and adjusted for seasonal variations, reached €12,6 billion. This marks the third consecutive month of growth for the sector.

Compared to February, banks granted an additional €1 billion in mortgage loans. This level also slightly exceeds that recorded a year earlier, in March 2025, when new loans totaled €12,2 billion.

This development confirms the gradual recovery of real estate financing after several quarters of slowdown.

Mortgage interest rates are generally stable.

The average interest rate for new mortgage loans stood at 3,22% in March 2026, compared to 3,23% in February. A year earlier, in March 2025, this rate reached 3,20%.

This data provided by the Bank of France excludes fees and borrower's insurance.

After the sharp rise in interest rates observed between mid-2022 and early 2024, the trend now appears to be stabilizing. This period of increases followed successive hikes in key interest rates by the European Central Bank (ECB), implemented to curb inflation in the eurozone.

For several months, the gradual easing of European monetary policy has been promoting a slight relaxation of mortgage rates, thus helping to revive the market.

First-time buyers who are particularly active

The Bank of France also highlights a notable trend among first-time buyers. Since the beginning of 2025, the number of loans granted to first-time home buyers has been increasing faster than that of all borrowers.

This trend reflects a gradual return of household purchasing power and a renewed accessibility of mortgage credit for new buyers.

Consumer credit is also on the rise

The consumer credit market also shows a slight increase in March 2026.

The volume of loans granted reached 5,7 billion euros, compared to 5,6 billion in February and 5,5 billion euros in March 2025.

At the same time, the average rate of consumer credit continues its moderate decline to settle at 6,33%, compared to 6,40% in February and 6,47% a year earlier.

This development reflects a progressively more favorable financing environment for individuals, both in the real estate market and for consumer credit.

Illustrative image of the article via Depositphotos.com.