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.