According to the Crédit Logement mortgage observatory, the average nominal mortgage rate in France was 3.40% in September 2026, compared with 3.25% in June in the same statistical series. The rate excludes insurance and the cost of loan security. The observation covers home loans to individuals resident in France, excluding regulated loan schemes; it does not establish non-residents’ borrowing terms.
What does the fall in French mortgage activity mean?
According to Crédit Logement’s observation in France, mortgage volume fell by 9.2% and the number of loans by 8.1% over the three months to the end of September 2026 against the same months of 2025. This is a fall in lending activity, not a property-price measure or evidence of a discount on a home. It covers housing loans to individuals living in France, excluding regulated loan schemes, at the stage of agreeing protection for the lender against non-repayment, before the bank offer; it does not measure money paid out during those months. Non-residents need a personal bank assessment of access and terms; a preliminary calculation is not approval.
How should the new French mortgage figures affect your property-search budget?
Before searching for a home in France, update your personal bank calculation: Crédit Logement’s average nominal rate rose from 3.25% in June to 3.40% in September 2026, excluding insurance and loan security. With the same term and monthly payment towards principal and interest, a higher rate reduces the calculated loan amount. From available own funds plus the preliminary loan amount, subtract acquisition and financing costs, necessary works and a separate reserve: the remainder is the property price available for your search. Unknown costs are not zero; until clarified, use cautious provisional scenarios rather than a final price ceiling. The average does not establish personal terms, including for non-residents; the bank calculation is not approval.
If you already have the bank’s preliminary assessment, tell IMMO BTC what kind of home you are looking for and in which part of the French Riviera. We can help define search criteria around the calculated budget. There is no need to send banking documents for the first discussion. Discuss your search criteria.
Historical context: resale prices in the second quarter of 2026
France’s national statistics institute and notary organisations reported on 8 September: resale prices in Provence–Alpes–Côte d’Azur changed by −0.5% quarterly and +0.2% annually; apartments: −0.2%/+1.3%; houses: −0.9%/−1.0%, respectively. Quarterly changes are seasonally adjusted; the latest values are provisional. These are second-quarter indices, not October prices or discounts on a particular property.
What to check next
The next step is to translate your bank assessment, available cash, costs and reserve into a search price ceiling. See How can you budget for a French mortgage before your property search?.
Two consecutive policy rate rises and more expensive mortgages raise another question: buy, wait or sell? Our study of French property prices after interest rate rises compares historical cycles and their implications for mortgage buyers, cash buyers and owners considering a sale. It also examines luxury villas, where a slowdown may first show up in transaction numbers and the time needed to sell.
Sources and currency
Sources checked on 19 October 2026.
Updated on 19 October 2026: the latest lending data appear first; a short reference to earlier price indices retains their original observation period. This page was first published on 21 September 2026.
