The average mortgage interest rate in France declined for almost a decade before increasing dramatically in 2022. As of January 2023, new housing loans had an average interest rate of 2.2 percent - about twice higher than the year before. This trend was observed in most countries across Europe.
How has the mortgage reacted to the interest rate hike?
The value of new mortgage lending in France decreased notably in the third quarter of 2022, possibly as a response to the higher lending costs. Additionally, soaring inflation has also played a major role in decreasing home buyer sentiment by eroding savings and the purchasing power of prospective home buyers.
How have house prices reacted to the change?
Though house prices have steadily increased since 2016, the growth was the highest in the third quarter of 2021 when the house price index jumped from 122 to 134 index points. In 2022, the increase of residential real estate prices slowed down, with a forecast to turn negative in 2023. According to a July 2022 forecast, house prices are set to decline by four percent in 2023.
Monthly average interest rate on new mortgage loans in France from April 2012 to May 2023, by mortgage term
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Banque de France. (July 14, 2023). Monthly average interest rate on new mortgage loans in France from April 2012 to May 2023, by mortgage term [Graph]. In Statista. Retrieved November 10, 2024, from https://www-statista-com.ezproxy.canberra.edu.au/statistics/1302978/monthly-average-interest-rate-on-new-mortgage-loans-in-france/
Banque de France. "Monthly average interest rate on new mortgage loans in France from April 2012 to May 2023, by mortgage term." Chart. July 14, 2023. Statista. Accessed November 10, 2024. https://www-statista-com.ezproxy.canberra.edu.au/statistics/1302978/monthly-average-interest-rate-on-new-mortgage-loans-in-france/
Banque de France. (2023). Monthly average interest rate on new mortgage loans in France from April 2012 to May 2023, by mortgage term. Statista. Statista Inc.. Accessed: November 10, 2024. https://www-statista-com.ezproxy.canberra.edu.au/statistics/1302978/monthly-average-interest-rate-on-new-mortgage-loans-in-france/
Banque de France. "Monthly Average Interest Rate on New Mortgage Loans in France from April 2012 to May 2023, by Mortgage Term." Statista, Statista Inc., 14 Jul 2023, https://www-statista-com.ezproxy.canberra.edu.au/statistics/1302978/monthly-average-interest-rate-on-new-mortgage-loans-in-france/
Banque de France, Monthly average interest rate on new mortgage loans in France from April 2012 to May 2023, by mortgage term Statista, https://www-statista-com.ezproxy.canberra.edu.au/statistics/1302978/monthly-average-interest-rate-on-new-mortgage-loans-in-france/ (last visited November 10, 2024)
Monthly average interest rate on new mortgage loans in France from April 2012 to May 2023, by mortgage term [Graph], Banque de France, July 14, 2023. [Online]. Available: https://www-statista-com.ezproxy.canberra.edu.au/statistics/1302978/monthly-average-interest-rate-on-new-mortgage-loans-in-france/
