Mortgage rates remained stable in September as the recovery continues

The mortgage market continued its recovery in September in France with a 4% year-on-year increase in the amount of new loans granted, with stable rates, according to data published Thursday, November 6 by the Bank of France.

The total amount of new loans granted in September (excluding renegotiations) amounted to 12,8 billion euros (after 12,2 billion in August), in a market where first-time buyers continue to represent more than half of new loans, at 53%, the institution points out.

The average term of new home loans for the purchase of a main residence is 23 years and 4 months for all borrowers and 23 years and 10 months for first-time buyers, the Bank of France points out.

Cumulatively since the beginning of the year, the outstanding amount of new loans has reached 107,8 billion euros, up 38% compared to the first nine months of 2024 (77,9 billion).

Mortgage lending had largely declined between mid-2022 and early 2024, a period during which the European Central Bank (ECB) had gradually increased its key interest rates to combat inflation in Europe.

This increase had an impact on mortgage interest rates, which rose on average from 1,26% in May 2022 to 3,61% in January 2024.

They have since fallen slowly, as the ECB has eased its monetary policy and lowered its key rates, following the return to normal of inflation.

Interest rates on new home loans, regardless of their duration, averaged 3,09% in September, excluding renegotiation, fees and insurance, after 3,10% in August and 3,09% in July.

Moreover, consumer credit growth remained dynamic in September, with outstanding amounts increasing by 4% year-on-year.

Illustrative image of the article via Depositphotos.com.