Mortgage rates expected to remain stable during the summer

According to Pretto data, the average rates observed in July are as follows:

• 2,89% over 15 years
• 3,03% over 20 years
• 3,11% over 25 years

Summer has begun with stability in mortgage rates. No significant changes have been observed compared to June.
Rates remain stable despite the ECB's rate cut

On June 4, the European Central Bank announced a further reduction in its key interest rates, from 2,25% to 2%. This decision was intended to support the economy and stimulate investment, but had no direct impact on the level of the 10-year OAT or on mortgage rates, which remained stable.

While borrowers benefit only marginally, savers have the unpleasant surprise of seeing Livret A (and LDDS) savings accounts (Livret A) interest rates fall once again. Although the official rate (which will change on August 1st) has not yet been revealed, the consensus is for a drop of between 1,5 and 1,7%—a far cry from the current 2,4%.

Therefore, saving on these products appears less and less interesting, unlike other more profitable investments, such as real estate - particularly on credit.

For Pierre Chapon, co-founder and CEO of Pretto: "We might have expected a more immediate impact on mortgage rates. But banks remain cautious: they are waiting for a more structural drop in refinancing costs before adjusting their rates."

First-time buyers still attractive to banks

Since the beginning of the year, banking institutions have been increasing the number of attractive offers to attract young buyers.

Among the current offers:

• A supplementary loan at a rate of 0,90% (up to 50.000 euros) offered by LCL, provided that the property is classified A, B or C. Without age or resource conditions;
• Banque Populaire proposes to “double” the amount of the PTZ (up to 25.000 euros)
• The Caisse d'Épargne offers a loan at a preferential rate if the buyer improves the DPE of the property by at least two classes.

For Pierre Chapon: "First-time buyers have finally found a negotiating lever. Today, they are the ones that banks are trying to attract. Well-informed, they know they can get better than the average rate if they use the right tools."

MaPrimeRénov suspended for comprehensive renovations: a blow for buyers

Since June 23, 2025, the MaPrimeRénov' program has been temporarily suspended—at least until mid-September. Only "gift-based" projects (individual projects such as insulation or boiler replacement) remain eligible this summer. Complete applications submitted before June 27 will still be processed normally during the summer, but new major projects will have to wait.

The impact is direct for buyers: many were planning to purchase a property requiring renovations, relying on MaPrimeRénov. This suspension is forcing them to rethink their plans: opt for a home without major renovations, reduce the scope of the renovation, or finance a larger portion of the cost themselves, particularly by including it in their mortgage.

A suspension that comes at an unfortunate time for a construction sector already weakened by a severe crisis: 33.000 jobs lost in the first quarter of 1 and around 2025 additional positions threatened by the end of the year.

It's time for renegotiation

While interest rates remain relatively stable, their decline over the past several months has made renegotiation more attractive than ever. Pretto is seeing a dramatic increase in requests: a 700% increase between the first half of 2024 and the first half of 2025. The number of loan consolidation simulations has increased eightfold.

What changes in July

This month, notary fees are once again in the news. The increase in transfer taxes (DMTO), passed with the 2025 Finance Act, is being extended to an additional department starting July 1st: Seine-et-Marne. In June, Côtes-d'Armor and Morbihan had already joined the list, which now includes thirty departments.

As a reminder, this increase (capped at 5%) has a direct impact on buyers. Indeed, for a property costing €250.000, you will have to pay €1.200 more (and an additional €2.000 for a property costing €400.000). First-time buyers, however, are exempt from this increase, provided the purchase price does not exceed €250.000.

Illustrative image of the article via Depositphotos.com.