It's a breath of fresh air for prospective homeowners: mortgage rates have finally begun to decline, a first in two years. Although the decrease is currently modest, it is generating some optimism among households eager to invest in property.
According to data from the Banque de France published this Monday, April 8th, the average interest rate on new housing loans (excluding renegotiations) decreased by 6 basis points, dropping to 4.11% in February, compared to 4.17% in January 2024. A slight decrease that is giving borrowers some hope.
At the same time, the amount of new housing loans (excluding renegotiations) also experienced a slight decrease in February, reaching 7.3 billion euros, compared to 7.6 billion the previous month. This trend contrasts with the peak observed in spring 2022, when this amount exceeded 22 billion euros, marking a significant decrease since then.
This decrease in rates is largely explained by the slowdown in inflation, observed not only in France but also throughout Europe. While in October 2022, inflation in the eurozone exceeded 10%, we have now returned to 2.4% in France. In Germany, inflation stands at 2.2%, its lowest level in three years and very close to the target set by the European Central Bank. This favorable economic situation is thus contributing to this relaxation in borrowing rates, offering new perspectives to stakeholders in the real estate market.