Mortgage lending: the average rate rose to 3,27% in June, with new loans reaching €13,2 billion.

Mortgage rates continue to rise in France. In June 2026, the average interest rate on new home loans, excluding renegotiations, fees and insurance, reached 3,27%, compared to 3,21% in May, according to data from the Bank of France.

We have to go back to February 2025 to find a comparable level. At that time, the trend was still downward, after rates exceeding 4% were observed a year earlier.

A recovery that began at the start of the year

After reaching 3,08% in December 2025, the average rate of new mortgage loans excluding renegotiations rose to 3,17% in January 2026. It then stabilized around 3,21% to 3,22% in the spring, before rising again in June.

This movement remains moderate compared to the peak recorded at the beginning of 2024, when average rates exceeded 4%. It nevertheless marks the end of the downward phase that borrowers had benefited from during 2025.

Credit production is increasing despite rising interest rates

The rise in interest rates did not discourage prospective homebuyers in June. New mortgage lending, adjusted for seasonal variations and excluding renegotiations, reached €13,2 billion, compared to €11,4 billion in May.

With the exception of October 2025, such an amount had not been observed since the period between mid-2018 and mid-2022, when average mortgage rates generally did not exceed 1,5%.

According to the Bank of France, production corresponds to new loans granted by banking institutions, even when the funds have not yet been actually paid to the borrowers.

Additional data from the institution also shows that the number of loans granted to first-time buyers, as well as the number of housing sales and loans distributed to all borrowers, has tended to stabilize since spring 2026.

Signs of a slowdown are expected in the coming months.

The Bank of France's data reflects loans already granted and appears with a certain delay. The Crédit Logement/CSA Observatory, which has partial but more advanced indicators in the financing process, reported a deterioration in demand and production in July.

"Mortgage lending indicators are declining sharply." Michel Mouillart, professor of economics, pointed out during a press conference held via videoconference, referring to a "reversal" after a period of"landing".

This development could be reflected in the statistics of the coming months by a decrease in the number of financed projects, as households have to deal with higher rates and less favorable commercial conditions.

A rate excluding fees, to be distinguished from the total cost of credit

The 3,27% rate published by the Bank of France is an effective rate in the strict sense. It corresponds only to the "interest" component of the loan and does not include borrower's insurance, processing fees, the cost of the guarantee, or any brokerage fees.

To compare the total cost of several offers, borrowers should refer to the annual percentage rate (APR), which includes mandatory fees related to obtaining the loan.

In the second quarter of 2026, the average annual percentage rate (APR) for fixed-rate mortgages with a term of 20 years or more was 3,97%. For reference, a loan of €100.000 repaid over 20 years at this rate represents a total cost of approximately €45.000.

On July 24, the Governor of the Bank of France, Emmanuel Moulin, stated that "rates remain at reasonable levels," while emphasizing that "offers from banks remain."

Fewer preferential offers

The terms offered vary considerably depending on the institution, the loan term, the down payment amount, and the borrower's profile. The rates provided to brokers for August also reflect an adjustment in banks' commercial policies.

"Several preferential offers, previously offered by a few establishments, have disappeared." wrote Caroline Pasquereau, spokesperson for the broker Empruntis.