Mortgage rates: slight easing in March, in a stable and tailored credit market

Mortgage lending remains a powerful and highly strategic loss leader for banking institutions, particularly among first-time buyers, who receive a significant portion of their sales efforts.

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

• 3,20% over 15 years
• 3,29% over 20 years
• 3,40% over 25 years

Compared to February, rates show a decrease of between -0,04 and -0,15 points depending on the durations and profiles, illustrating targeted adjustments rather than a uniform market movement.

Different business strategies depending on the banks

These past few weeks perfectly illustrate the extremely precise management of the mortgage market.

• +0,10 point observed at Crédit Agricole Île-de-France
• -0,10 to -0,20 points on certain intermediate scales at LCL
• -0,10 points to come at the SG
• -0,20 points announced by La Banque Postale

In a context of abundant liquidity and upwardly revised 2026 business targets, banks face no funding constraints. Production is currently limited more by transaction volume than by a lack of resources.

This is therefore not a generalized movement, but very targeted strategic arbitrage: conquering specific profiles, capturing savings, reviving sales of ancillary products (insurance, cards, investments).

For Pierre Chapon, CEO and co-founder of Pretto: “We are not in a phase of generalized increase or decrease. Each bank adjusts its pricing structure according to its commercial objectives, its volumes, and the profiles it wishes to attract. The market is extremely controlled.”

First-time buyers remain a particularly targeted group. As the main driver of the market, they are not affected by the psychological impact of the previous 1% interest rates. Some banks therefore prefer to offer one-off discounts (bonus loans, preferential rates on a specific tranche) rather than lowering their overall rates.

In such a competitive phase, the quality of the profile presented becomes crucial.

It is imperative to demonstrate impeccable management over the last three months:

• No unauthorized overdrafts
• Absence of intervention committees
• No transfers to cryptocurrency platforms
• No trace of online betting

Conversely, regular saving – even modest – sends an extremely positive signal.

Another major lever: residual savings.

Maintaining a financial cushion after the down payment reassures the bank. This buffer provides both security in case of unforeseen events and a sales advantage, especially if this savings is invested with the lending institution (life insurance, savings account, etc.).

Pretto example: residual savings influence your rate

Two first-time buyers, financed just 3 days apart, obtained different rates despite having comparable profiles:

Even though other factors come into play (income, debt, profession, location), the level of residual savings acts as a real risk buffer for the bank.

Concrete impact: over 25 years, a difference of 0,26 points in rates represents approximately €15.000 in interest.

In a highly competitive market where banks primarily seek to attract customers and savings, credit becomes a strategic loss leader. Each application is therefore carefully analyzed according to a range of criteria: disposable income, job stability, loan term, property energy performance certificate (EPC), and of course, available savings.

10-year OATs: an encouraging but still volatile signal

The 10-year OAT, the benchmark for bond markets, remains volatile but is showing an interesting signal. After settling at 3,24% on the morning of March 2 (its lowest level in six months), the rate has since rebounded slightly to around 3,29%.

This slight increase appears to be occurring within a tense geopolitical context, marked by the US attack on Iran this weekend. However, no panic has been observed in the markets at this stage: it currently appears to be more of a technical adjustment than a trend reversal.

As a reminder, the 10-year French government bond (OAT) was still trading around 3,60% a few weeks ago. This confirms a more favorable trend.

This does not necessarily mean a general decrease in mortgage rates, but this easing could temper any potential increases and give banks a little more flexibility.

The Crédit Logement/CSA Observatory also mentions the possibility of “one-off” reductions intended to support demand.

For Pierre Chapon: "The recent easing of the OAT (French Treasury bond) does not guarantee a massive reduction in interest rates, but it does take pressure off the banks. This opens the door to more favorable commercial adjustments for borrowers."

Mortgage lending remains a powerful lever for acquiring new customers, which limits sudden movements.

2026 Budget: Housing Recovery and Signals for Investment

The budget has been definitively adopted.

Regarding housing, the new Housing Recovery scheme aims to encourage investment in affordable rental properties through an enhanced tax depreciation mechanism for:

• dilapidated old housing in need of renovation
• some new housing

Objective: to support the rental supply in a context of persistent tension.

The MaPrimeRénov' scheme will reopen in 2026 to all households, strengthening incentives for energy renovation.

However, the new ceilings and floors of the PTZ have not yet officially come into effect: the scales remain unchanged at this stage.

For Pierre Chapon: "Public signals point towards support for the market, particularly the rental market. But households are still waiting for visibility, especially regarding the zero-interest loan (PTZ). Regulatory stability will be key to sustainably reviving demand."

Illustrative image of the article via Depositphotos.com.