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French Mortgage Rates Climb in April as Banks Reprice on Higher Debt Costs

Rising 10‑year bond yields linked to the Middle East conflict are feeding through to home‑loan pricing.

Overview

  • In April, banks raised their rate sheets as the Banque de France lifted the usury cap on loans of 20 years or more to 5.19%, which is the legal ceiling on interest for consumer credit.
  • French 10‑year government yields have jumped from about 3.3% in late February to roughly 3.9%–4.0%, making bank funding pricier and nudging mortgage offers higher.
  • Market data from Pretto show average April rates near 3.3% on 15‑year loans, 3.41% on 20‑year loans, and 3.52% on 25‑year loans after hovering around 3.3% earlier this year.
  • SeLoger reports the usual spring rebound has stalled, with buyer demand slipping and national prices down about 0.2% since January.
  • Brokers warn that further increases could shut out borrowers near the 35% debt‑to‑income limit or those offered rates above the legal cap, and SeLoger projects 65,000–100,000 fewer sales under a moderate rate shock and up to 240,000–270,000 fewer if the shock persists.