French mortgage rates continued their upward trend in November, with average rates reaching 3.60% for 15-year loans, 3.80% for 20-year loans, and 4% for 25-year loans.
This increase is directly linked to the rise in the 10-year OAT (Obligations assimilables au Trésor), the government bond that banks use as a reference for setting their mortgage rates.
Banks Raise Rates Between 0.10 and 0.40 Percentage Points
The latest barèmes from banks show rate hikes between 0.10 and 0.40 percentage points. Borrowers are now taking out 20 or 25-year loans at 4%. While this is the average rate, borrowers with the strongest dossiers can secure more favorable terms, with rates as low as 3.45% for a 15-year loan, 3.60% for a 20-year loan, and 3.70% for a 25-year loan.
Future Rate Trends Depend on Budget
The future direction of mortgage rates is now closely tied to the 2027 Budget, currently under discussion in the National Assembly. Sandrine Allonier, spokesperson for Vousfinancer, noted that the budget must reassure markets about the public finances trajectory. She explained that an agreement would not be enough to cause an immediate drop in rates, but it could at least help curb their continued rise.
Advice for Borrowers Amid Rising Rates
As rates climb rapidly, experts urge borrowers to be vigilant. Julien Langlade, president of Cafpi, says borrowers should submit a complete dossier with all necessary documents upfront to avoid delays.
He also advises securing a loan offer, which is valid for a minimum of 30 days and locks in the rate and conditions. For the compromis de vente, Langlade recommends setting a realistic conditional clause with a 45 to 60-day deadline to account for the time it takes to receive the offer.
