Mortgage rates rise across all loan terms

Mortgage interest rates in France continued to rise in November 2026, with average rates increasing across all loan terms, according to data from brokers Pretto and CAFPI. At CAFPI, average rates for 15-year, 20-year, and 25-year loans reached 3.40%, 3.61%, and 3.75%, respectively, representing increases of 0.10, 0.10, and 0.17 percentage points in one month.

Higher rates affect different income groups differently

Pretto reported that households with annual pre-tax net incomes of less than 40,000 euros now obtain an average rate of 4.07% for 25 years, while those earning between 40,000 and 80,000 euros have an average rate of 3.97%. Conversely, borrowers with annual incomes exceeding 120,000 euros have an average rate of 3.53% for 25 years, which is 0.54 percentage points lower than for the most modest households.

Rising rates increase monthly payments

The rise in rates has financial consequences for borrowers. Pretto's simulations show that a household borrowing 250,000 euros over 20 years at a rate of 3.76% now has to repay approximately 1,484 euros per month, excluding insurance, with the rate increase adding 13 euros per month, or 3,115 euros over the loan's duration.

Housing affordability declines in major cities

The housing purchasing power of households continues to erode. According to CAFPI's calculations, for a monthly payment of 1,000 euros over 25 years, the accessible area has decreased by 5.75 square meters in one year in Rennes, 10.61% in Reims, and 3.90 square meters in Marseille.

Bond market tensions influence mortgage rates

The increase in property rates is partly explained by tensions in the bond markets. On October 21, the rate at which the French state borrows for 10 years, known as the OAT 10 years, crossed the 5% threshold, a first since 2002. This indicator is one of the references used by banks to determine mortgage rates.

Banks adjust rates in response to market conditions

Some banks have already reacted. Pretto reported that the Crédit Mutuel du Sud-Ouest raised its rates by 0.25 percentage points as early as October 19, while the Crédit Agricole Île-de-France applied an increase of 0.20 percentage points two days later. Pierre Chapon, co-founder of Pretto, explained that banks have chosen to defend their volumes in a slow-moving market rather than inflate their profit margin on loans, but this strategy could become more difficult to maintain with the rise in bond rates.

Uncertainty remains for potential homebuyers

For those considering buying property, the outlook remains uncertain. Several brokers anticipate a continuation of the rate increase by the end of the year, with averages that could reach 4% for 25 years. However, banks continue to seek to attract new customers, and the differences between institutions can be significant. According to Pretto, clients of the broker who obtained a loan offer for 25 years in the last 30 days have benefited, on average, from a rate 0.18 percentage points lower than the initial rate set by their bank after pushing for negotiations.