Mortgage rates are rising slightly again at the start of this year.

Despite the French 2026 budget still pending and an uncertain political climate, banks are banking on mortgage lending to attract new customers and have announced ambitious production targets. For well-prepared households, now is the time to build a strong application and optimize their financing.

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

• 3,20% over 15 years
• 3,31% over 20 years
• 3,40% over 25 years

OAT and the economic environment

The 10-year French government bond (OAT) yield is currently at 3,60%, a slight increase. Its fluctuations reflect, in particular, the persistent political uncertainty, with the budget still unpassed and the government operating under a special law. This instability is creating a degree of uncertainty in the financial markets, generating caution and a lack of visibility for investors, without, however, triggering a surge in prices.

While banks are aware of this situation, they do not automatically pass on these variations to their lending criteria. They retain the flexibility to adjust their rates according to their commercial strategy and the profiles they seek, through the application of discounts. This flexibility helps maintain competition in the mortgage market and provides borrowers with greater visibility when planning their purchase.

A credit market driven by first-time buyers

By the end of 2025, the mortgage market confirms a strong trend: first-time buyers have once again become the main driver.

According to the HCSF, 47 to 48% of mortgage loans granted in the last quarter of 2025 were to first-time buyers, compared to 30 to 32% at the beginning of the decade - a historically high level.

This trend is also observed at Pretto, where 60% of the projects supported in 2025 involved the purchase of a primary residence by households that had previously been renters (compared to 54% in 2024). This is a clear sign of the gradual return of first-time buyers to the market, despite a still uncertain economic climate.

This trend can be explained by the stabilization of interest rates, the resumption of lending, and banks' willingness to allocate some of their flexibility towards homeownership. Government programs (such as expanded zero-interest loans and partial exemptions from transfer taxes) also support the borrowing capacity of these borrowers.

According to Pierre Chapon, CEO and co-founder of Pretto, a brokerage firm in Paris and Nantes: "The market has clearly become favorable to first-time buyers again. Banks are targeting them as a priority, but within a still demanding framework. The key remains the quality of the project and the structuring of the financing."

In a more transparent but still selective market, support and optimization of financing remain crucial, especially for first-time buyers, who are often less familiar with banks' decision-making criteria.

What changes on January 1, 2026

Several regulatory and economic changes will come into effect on January 1, 2026 and may have a direct or indirect impact on household real estate projects.

Revaluation of the minimum wage

As every year, the minimum wage is increased in order to preserve the purchasing power of the employees concerned.

As of January 1, 2026, it will increase by 1,18%, reaching:

• €12,02 gross per hour (compared to €11,88),
• €1.823,03 gross per month for full-time work (i.e., +€21,23),
• €1.443,11 net per month.

Evolution of the calculation of the Energy Performance Certificate (EPC)

The electricity conversion factor in the Energy Performance Certificate (EPC) has been lowered from 2,3 to 1,9, in order to align it with the European standard. This change corrects a historical penalty for homes heated by electricity and may improve the energy rating of some properties.

Energy Performance Certificates (EPCs) issued from January 1, 2026 onwards will automatically incorporate this new calculation method. Existing certificates remain valid for 10 years, but can be updated free of charge if the energy rating improves.

Increase in the maximum agency fees for rentals

The ceilings for fees charged to tenants (viewing, file preparation, lease drafting, inventory) are being increased for the first time since 2014. This increase, indexed to the IRL, results in a rise of 0,87% from January 1, 2026, only for leases signed from that date.

Donations must be declared online.

From January 1, 2026, the declaration of donations between individuals (sums of money, goods, securities) must be made online on the website impots.gouv.fr, including for donations made before 2026. The paper declaration will only be maintained in certain specific cases.

Illustrative image of the article via Depositphotos.com.