Following a year characterized by the stabilization of property prices and a moderate recovery in transaction volumes, the French economy is projected to maintain moderate growth in 2026. As inflation gradually converges toward the European Central Bank’s target, borrowing capacity and household purchasing power are showing signs of improvement compared with the levels observed three years ago.
The combined effects of regulated energy prices, a resilient labor market, and the progressive normalization of supply chains have contributed to a reduction in inflationary pressures. In this context, real household income is stabilizing, supporting a gradual recovery in consumer confidence.
Provided inflation remains contained, the European Central Bank is expected to maintain a stable monetary policy stance. Such conditions would continue to ease banks’ refinancing costs and support liquidity conditions within the financial system. A sustained decline in ECB policy rates would, over time, contribute to more favorable lending conditions through reduced funding costs and narrower lending margins.
Long-term financing conditions in France are primarily benchmarked against the 10-year OAT (aka “Obligations Assimilables du Trésor” in French), which serves as the reference rate for mortgage pricing. Over the past year, the 10-year OAT has fluctuated between 3.10% and 3.63%. Variations typically translate into corresponding adjustments in average mortgage rates.
While the macroeconomic environment at both the European and national levels remains the principal determinant of property market dynamics, several structural factors are also influencing credit conditions and transaction activity:
- Sustained demand in selected rural areas and major metropolitan centers, partly driven by evolving remote working patterns
- Demographic trends supporting strong rental demand
- Strengthened household savings levels, resulting in higher average personal contributions
As of February 2026, mortgage rates have broadly stabilized. While investment opportunities are increasing, French lenders remain selective. Attractive terms and conditions are gradually improving for well-prepared buyers. To secure optimal financing terms, borrowers must focus on their personal contribution, debt-to-income ratio and the overall quality of their acquisition project.
Our dedicated team of brokers can review the efficiency of your project and determine your mortgage capacity to ensure that you are receiving the right mortgage solution for your purchase in France.
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