French mortgage rates for February 2022

Inflation, growth and mortgage rates increase in 2022

While prices for manufactured goods fell, nearly all other prices were higher and energy prices were up 19.7% over one year following increases on global oil markets. Inflation reached 3.5% by the end of the year 2021 (its highest level since September 2008). The French government is estimating the inflation rate to return below the 2% mark at the end of 2022, then stabilize at around 1.7 % in 2023 and 2024 (levels recorded before the financial crisis of 2008).

The French GDP (gross domestic product), fueled by strong domestic demand despite the ongoing Covid-19 pandemic, grew an estimated 6.7% in 2021. The French national bank (Banque de France) is predicting a slowdown to 3.6% in 2022.

While the French economy is returning to a “normal” inflation rate and growth, banks need to lend and recruit new customers. They have abundant cash that they must invest and mortgages are a risk/return investment of choice but with an increase in mortgage rates.

With the OAT TEC 10/Ten-year Treasury Bonds (standard for home loans prices) at 0.37% on February 1st 2022, the increase should remain very moderate and should hardly impact the borrowing capacity of individuals.

Current mortgage rates for February 2022

Fixed rate(1)  Term Monthly repayment

for 10 000€ borrowed

1.25% 10 years / 120 months 88.69€
1.30% 15 years / 180 months 61.18€
1.60% 20 years / 240 months 48.72€
2.05% 25 years / 300 months 42.63€

(1) The indicated rates are given for information purposes and are based on the latest bank rates of one or more of our partners. The rates in the table above do not include the ancillary cost as notary fees, guarantees, insurance and intermediation.

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