Mortgage Rates Continue to Fall in February, a Boon for Borrowers

Interest rates continue to fall, thanks to accommodative monetary policy and competition between banks seeking to attract new customers after two years of sharp market contraction. According to Pretto data, the average rates observed in February are as follows:

• 2,95% over 15 years
• 2,97% over 20 years
• 3,07% over 25 years

For Pierre Chapon, president of Pretto: "We are seeing a real return of banks' appetite for mortgage credit. With increased competition between institutions, the best profiles can obtain very attractive financing conditions, sometimes better than those offered to the State itself on its 10-year debt. This is a strong signal for the market."

Furthermore, sellers remain open to negotiation, an additional advantage for buyers who find room to maneuver on prices.

Projections for the coming months remain encouraging:

• The ECB's key rates fell again at the start of the year and now stand at 2,75%, reinforcing the easing of banking conditions.
• The credit offer is expanding, with a gradual return of banks that had reduced their production. Several are offering advantageous conditions for first-time buyers, by offering preferential rates to borrowers presenting a favorable Energy Performance Diagnostic (DPE) or planning energy renovation work. This approach aims to encourage home ownership while supporting initiatives in favor of the energy transition.

However, the French budgetary context and the volatility of the bond markets remain elements to monitor, which could slow the downward trajectory of rates in the medium term.

For Pierre Chapon: "Borrowers who were still hesitant can see the start of 2025 as an interesting opportunity to carry out their project. Rates are falling, banks are lending again and prices have adjusted after several months of decline. It is time to analyze your project and position yourself."

Illustrative image of the article via Depositphotos.com.