The average interest rate on a mortgage in France decreased to 3% in March across all property types from new build to existing according to Credit Logement.
French mortgage interest rates reached their historic low level in June 2013 when the average rate hit 2.89% and the best 20 year fixed rate for non-residents reached 3.25%. Since then rates have volatile within a range. In December the average rates stood at 3.08%, decreasing to 3.04% in February and now 3% in March.
The TEC 10 index in France which is used by many banks as a base from which to change their fixed rates, has fallen by 0.40% since the beginning of the year now standing at 2%. The historic low of this index was in May 13 when it stood at 1.7%.
In terms out outlook, many experts predict that rates won’t rise materially until summer next year, which seems to be confirmed by this new reduction in interest rates. So with a fixed rate for the term of 3.5% available to non-residents we can see that we are only slightly up on the lowest levels we have encountered historically, making it an exciting and profitable time to be buying in France.