Mortgage rates in France have stopped decreasing for three months, despite positive developments in the real estate market. An analysis of the current situation shows that this freeze in rates creates uncertainty for buyers and investors.
Rates Freeze Amid Market Recovery
Mortgage interest rates have not changed for the past three months, despite a resurgence in property sales. After a steep drop from above 4.5% at the end of 2023, rates have stabilized around 3%. This comes amid an 8% increase in transaction volumes within the real estate market in the first half of 2025, indicating some recovery.
Structural Normalization of Banking Conditions
The stabilization of rates is a result of deeper shifts in banking policies. Major brokers report that rates have remained unchanged since spring 2024, signaling a more selective lending approach by banks. While they continue to actively pursue customer acquisition, they focus on more favorable or strategically important profiles.
Seeking Alternative Investments
Some investors are beginning to look towards alternatives unrelated to traditional banking rates. Data shows a growing interest in Bitcoin as a safe-haven asset and diversification tool, highlighting a shift in saving strategies as traditional credit remains stagnant.
Thus, the current situation with rates indicates that stability may become the new norm in the emerging real estate market. This requires buyers and investors to rethink their long-term strategies.
