Access to mortgage mortgage is a key barometer for economic health and household purchasing power. After a year 2023 marked by a drastic fall in borrowing volumes, the European Central Bank (ECB) began a turn with a first drop in its key rate. This decision, welcomed by the governor of the Banque de France, François Villeroy de Galhau, is accompanied by a series of indicators which suggests a gradual recovery of the market. But, is this embellished sustainable? And above all, will it sufficiently reverse the trend for borrowers and players in the real estate sector?
A convalescence credit market
“There are many positive signs today,” says François Villeroy de Galhau. In addition, he specifies that the recent decrease of 0.25 points in the key rate of the ECB is starting to produce beneficial effects on the granting of credits. In January, the average rate of new real estate loans stabilized at 3.32 %, a level below those observed a year ago. At the same time, new real estate credits (excluding renegotiations) reached 9.9 billion euros, an amount in clear improvement compared to the historic hollows recorded in 2023.
This new dynamic is largely explained by correction of prices on the real estate market. According to experts, the combined adjustment of rates and prices allows borrowers to regain in purchasing power. “In 2023, an acquisition represented five years of income, it only represents four in 2025,” said the CAFPI broker. An evolution that contributes to restoring confidence in buyers and relaunching demand after several months of market paralysis.
Support measures to support the takeover
Beyond the effects of monetary policy, Other levers reinforce this recovery. Indeed, from 1er April, the zero rate loan (PTZ) will be extended to the entire territory and to individual houses, while it was previously limited to apartments located in tense areas. A change that could facilitate access to property for many first-time buyers. The other encouraging element is the freezing of notary fees for the first purchases, which still lightens the financial burden that weighs on households who wish to become owners.
However, this recovery remains fragile. If the request starts to increase, with a record of 55,000 credits requests in January 2025, economic uncertainties remain. ECB's monetary policy could still evolve according to inflationary pressures, which would directly impact interest rates and borrowers' confidence. For specialists, the real question is now whether this improvement fits into a lasting movement or if it remains a simple technical rebound. In the meantime, borrowers benefit from a more favorable window to finance their real estate projects, an opportunity that may not last indefinitely.
If these signals encourage, they do not guarantee a massive restart of the real estate market. The rate trajectory remains uncertain and could depend on the next decisions of the ECB. In addition, the prudence of banks in the granting of loans remains a limiting factor. For borrowers as well as for investors, vigilance therefore remains in front of a transitional market.
Maximize your Cointribne experience with our 'Read to Earn' program! For each article you read, earn points and access exclusive rewards. Sign up now and start accumulating advantages.
