After a dizzying increase in real estate loans, rates have resumed a downward trend since the start of 2024, reaching their lowest level in December. This situation will allow a greater number of French people to become owners in 2025.
According to the online broker Cafpi, the borrowing capacity of French citizens has relatively increased since November 2023. “Between November 2023 and November 2024, borrowers can acquire an additional 11.43 m² in Nantes, 9.66 m² more in Toulouse. and 9.01 m² in Reims. Even in Paris, it is now possible to buy 3.04 m² more than a year ago.”
In addition, it is likely that the average rate will be around 3% at the start of 2025. The real estate professional recalls that “it will have taken nearly a year and a half to find real estate credit conditions where no average rate exceeds 3.50%.”
Banks are increasing their efforts to make real estate loans more accessible, by relaxing granting conditions and reducing rates. “Some establishments go even further by offering zero-rate packages specifically intended for first-time buyers,” explains Nassima Khiari of Empruntis.
Currently, the time is right to take out a home loan. Indeed, even if the fall in rates is expected to continue in 2025, an increase in purchase prices is expected. Even by taking out a loan now, the borrower will be able to benefit from the future drop in rates. To do this, it will be enough to renegotiate your rate with your bank, which will not be able to refuse a revaluation, particularly if the rates reach 2%.
What is the average mortgage rate in December 2024?
Concretely, the average rate for a 15-year mortgage loan is 3.15%, according to Ouest-France. It reaches 3.35% for a period of 20 years and 3.55% over 25 years. At the start of the month, these rates fell by an average of 0.5%. It is important to note that borrowers can negotiate a lower rate with their bank. Currently, the lowest negotiated rates are 3.1% for a 15-year mortgage, 3.15% over 20 years and 3.3% over 25 years.
Other good news for potential buyers: the income threshold required to obtain a property loan has fallen. Thus, according to the example of Ouest-France, for a loan of 300,000 euros over 20 years, you must now earn 5,200 euros per month, compared to 5,650 euros previously. Finally, another factor encourages buyers to take the plunge: the drop in real estate prices, which was 5.2% in the first quarter of 2024, according to the notaries' reference index.
