In Q1 2026, the French mortgage market confirms its stabilisation. Rates have changed very little compared to the end of 2025, with a slight increase across all loan durations — a period of calm that reassures borrowers and supports the market recovery that has been underway in recent months.
Based on banking rate schedules observed at the national level, the rates recorded this past quarter generally stand at:
- between 3.10% and 3.30% over 20 years
- between 3.25% and 3.45% over 25 years
A Confirmed Market Recovery
The volume of mortgage loans granted by banks increased by 33% in 2025 according to the Banque de France’s annual review. This momentum continues into Q1 2026, with banks remaining in conquest mode, particularly as the traditional “Spring Property Season” approaches.
Banks, always looking to attract new clients, have maintained an aggressive commercial strategy by offering advantageous conditions. The strongest profiles, such as first-time buyers, have been able to benefit from mortgage rates close to 3% over 25 years. (👉 Simulate your borrowing capacity)
Why Have Mortgage Rates Stabilised in 2026?
Several factors explain this period of calm:
After the slight tension at the end of 2025 — driven by budgetary uncertainty and the rise of the 10-year OAT above 3.60% — the situation has eased. The OAT has fallen back to around 3.30%, allowing banks to stabilise their rate schedules.
Two major factors underpin this resilience: firstly, the stability signal sent by the European Central Bank, which maintained its key interest rates on 19 March. Secondly, banks’ determination not to disrupt the momentum of the “Spring Property Season”, a pivotal period during which they actively seek to win new customers.
No institution wants to cross the psychological threshold of 3.5% on average over 20 years, which could risk stalling the market. Banks are therefore willing to reduce their margins in order to maintain a steady flow of lending.
Regional Disparities to Be Aware Of
Although the differences may seem modest, a few tenths of a percentage point can represent thousands of euros over the life of a loan. These disparities are driven by the commercial strategies of regional banks, which adjust their rates according to their objectives and local market conditions. Some reduce their margins to attract first-time buyers, while others, in more dynamic markets, apply higher rates.
As a general rule, strong banking competition in a given area leads to more advantageous conditions. This is precisely why working with a mortgage broker helps identify the most competitive lenders based on your profile and location. (👉 Find out how we support you)
What Lies Ahead ?
Experts are not unanimous on the direction of rates in the coming months. The Observatoire Crédit Logement anticipates a rise towards 3.40%, while other analysts forecast a drop below 3% if the ECB further eases its monetary policy. The stabilisation scenario remains the most likely according to the majority of market players.
Despite a context of strong volatility in French OATs driven by geopolitical tensions and economic uncertainty, no sharp rise in mortgage rates is expected. The mortgage market is heading towards near-stability in the weeks ahead.
In this context, a well-prepared project and a solid application file make all the difference. Do not hesitate to contact us for a personalised assessment of your situation. (👉 Also read our end-of-2025 rate review)
