French mortgage rates rise, impacting housing accessibility

Mortgage rates in France have seen a significant acceleration, complicating access to housing for many households. According to data from the Observatoire Crédit Logement/CSA for the third quarter of 2026, the average interest rate for competitive sector credits stood at 3.40% in September, with an overall quarterly average of 3.32%.

Following a period of relative stability earlier in the year, banks began raising rates in June due to economic degradation, inflationary pressures, and tighter refinancing conditions. The increase accelerated sharply in September, with rates for 20-year loans rising by 17 basis points between June and September.

This trend creates a ‘scissor effect’ for buyers: rising interest rates reduce the total amount banks are willing to lend for a given income, while high property prices remain a persistent pressure. To help borrowers manage financing, there has been a shift toward longer loan durations, with the average loan term for the third quarter reaching 252 months.