The mortgage market continued its recovery in October in France, with a 3% increase in the amounts granted in one month, according to data published on Monday, December 8 by the Bank of France.
The total amount of new loans granted in October, excluding renegotiations and adjusted for seasonal variations, amounted to 13,2 billion euros, 400 million euros more than in September.
The average interest rate on these new loans remained stable at 3,09%. It was 3,32% in January.
This rate remains far from the last peak reached in early 2024 (4,17%), but has been decreasing only very slightly for the last six months.
Mortgage lending amounts had largely decreased 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.
These increases were subsequently passed on to mortgage interest rates.
They have since receded slowly, as the ECB has eased its monetary policy and lowered its key interest rates, and inflation has eased.
This has allowed the mortgage market to restart: in the first ten months of 2025, the amounts granted were 37% higher than in the same period last year.
Illustrative image of the article via Depositphotos.com.
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