Strong Growth in Mortgage Lending in Q1 2025
📈 Surge in Loan Volumes
Mortgage lending in France experienced a sharp rebound in early 2025.
Between March 2024 and March 2025, home loan production increased by 71%, rising from €7 billion to €12 billion.
March 2025 loan volumes nearly matched those of December 2024, the highest month of the previous year.
The trend started strong, with €9.9 billion in loans granted in January and €10.8 billion in February.
📉 Falling Interest Rates
Average mortgage rates continued to drop in Q1 2025.
The average rate fell to 3.16%, down 22 basis points since January.
In March alone, the average was 3.09%, compared to 3.31% in December 2024.
This decline was helped by the European Central Bank cutting its refinancing rate to 2.65% (as of March 12, 2025), along with cheaper retail savings funding.
📊 Higher Demand and Eased Lending Conditions
Real estate demand is picking up: property search interest increased by 13.9% year-on-year nationally.
Banks have also relaxed their lending criteria, making credit more accessible for households.
🔮 Outlook
The combination of lower rates, rising demand, and easier credit conditions suggests a continued recovery in the housing market.
However, future performance will depend on economic stability and interest rate trends.
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