A major bank has recently announced a noticeable rise in its mortgage loan rates, sparking concerns about a broader increase in borrowing costs and a possible rise in loan rejections. In France, the 10-year loan rate in the euro zone has reached 4.9%, the highest level in 24 years. This has prompted banks to raise their mortgage rates, which now range between 3.5% and 3.6% (excluding insurance) for 20 and 25-year terms, up from 3.2% to 3.3% at the end of last year. Fernand Letertre, a broker at Vousfinancer in the Oise, noted that every month, banks are increasing their rates by 0.1 to 0.3%, indicating a steady upward trend. Jordan Frarier, president of Foncia Transactions, has highlighted two major risks to the real estate market: the uncertainty surrounding the presidential election and the rising cost of loans. He emphasized that the debt ratio should not exceed 35% of disposable income, but the usury rate—legally defined maximum interest rates—also affects the approval of loans. Julien Langlade, president of the broker Cafpi, added that while banks are not planning to stop lending, they have warned that rates will keep rising, and it will become more challenging to approve applications, particularly in the first months of 2027. In October, banks observed a nearly universal increase in mortgage loan rates of about 20 basis points. Only individuals with high assets or high incomes can still qualify for discounts, regardless of the loan duration. The 10-year OAT (a type of government bond) reached 5% recently and is now around 4.85%, contributing to the rise in loan rates. Projections suggest that the debt burden could reach 100 billion euros as early as 2029-2030. The expected rise in usury rates for the last quarter of 2026, which will take effect on October 1, could impact the market if nominal interest rates continue to increase rapidly. While the daily market interest rate remains relatively low at around 2.44%, it has seen a rebound following the conflict in Iran. The implementation of Basel III Committee (CRR3) regulations, which require banks to hold more capital, has raised fears of reduced credit availability. Additionally, the potential introduction of a digital euro could lead to capital leaving bank balance sheets, further limiting the ability to provide loans. On the real estate market, several professional events held in September criticized the lack of action by the public sector. The High Council for Financial Stability (HCSF) has not revised the existing rules that place constraints on lenders. Investment incentives, such as the LMNP and LMP, are expected to be further reduced in the initial drafts of the Finance Bill, and the Jeanbrun program lacks support. While the existing real estate market has performed well since the beginning of the year, this momentum is slowing down, and property prices are struggling to match the borrowing capacity of households.