As of June 2025, the French real estate market continues to evolve within a context of stable average mortgage rates and favorable borrowing conditions, despite ongoing uncertainties on the international economic stage.Prospective buyers currently benefit from an opportune period to realize their projects, with attractive mortgage rates stabilizing and a market that still offers genuine opportunities.
In this reassuring environment for real estate project initiators, understanding current borrowing conditions is essential to optimize financing.This article provides a detailed analysis of mortgage rates in June 2025, along with practical advice for both buyers and property sellers.
Mortgage Rate Barometer in June 2025
Loan Term | Best Rates | Average Rates | Market Rates |
|---|---|---|---|
10 years | 2.74% | 2.97% | 3.48% |
15 years | 2.85% | 3.08% | 3.71% |
20 years | 2.95% | 3.16% | 3.84% |
25 years | 3.05% | 3.26% | 3.98% |
Source: Cafpi
Top Negotiated Mortgage Rates by Loan Duration
Negotiated rates with banking institutions have reached particularly attractive levels in this spring of 2025.For borrowers presenting a solid application with a substantial personal contribution, the most favorable mortgage rates are set at 2.74% over 10 years, 2.85% over 15 years, and 2.95% over 20 years in June 2025.
Under similar conditions, a 25-year loan term allows for a negotiated rate of 3.05%, an opportunity to seize for first-time buyers aiming to optimize their borrowing capacity for a property purchase.These advantageous conditions are generally accompanied by demonstrated professional stability and well-managed budgeting.
Banks pay particular attention to borrowers' debt-to-income ratios while offering reduced processing fees for well-prepared residential purchase projects.A Capifrance advisor can assist you in negotiating your financing with our banking partners.
Regional Mortgage Rate Comparisons in France
Analyzing average rates by region reveals significant disparities across France.The Occitanie region stands out with the best borrowing conditions over 15 years, offering an average rate of 2.99%, while Île-de-France shows 3.23% for the same duration.
Hauts-de-France maintains its attractive position for 20-year loans with a rate of 2.96%, notably more advantageous than Bourgogne-Franche-Comté, where rates reach 3.45%.For 25-year financing, the Provence-Alpes region offers the best opportunities with an average rate of 3.12%.
These regional variations are mainly due to local banks' commercial policies and the competition among lending institutions in each territory.A rate difference of 0.20 percentage points can represent several thousand euros in savings over the total loan duration.
Evolution of Mortgage Rates from January to June 2025
Period | 10 years | 15 years | 20 years | 25 years |
|---|---|---|---|---|
January | 3.00% | 3.25% | 3.31% | 3.40% |
February | 2.99% | 3.16% | 3.24% | 3.32% |
March | 2.80% | 2.90% | 2.89% | 2.99% |
April | 2.65% | 2.75% | 2.89% | 2.99% |
May | 2.79% | 2.85% | 2.90% | 3.00% |
June | 2.74% | 2.85% | 2.95% | 3.05% |
Source: Cafpi
Analysis of Mortgage Rate Trends in the First Half of 2025
The evolution of mortgage rates in the first half of 2025 reflects a two-phase dynamic: an initial decline followed by a current stabilization phase.
Since late 2024, rates have undergone a continuous decrease until April 2025, notably due to a more accommodative monetary policy from the European Central Bank and a gradual decline in inflation.This easing phase resulted in an average rate of 2.65% over 10 years and 2.75% over 15 years in April, levels that were highly attractive for borrowers.This widespread decline contributed to a resurgence in financing requests and strengthened households' purchasing power in the spring.
However, data from May and June indicate a subtle yet significant reversal, leading to the current stabilization phase.Rates have slightly increased, with an average rate of 2.95% over 20 years in June, compared to 2.89% in April.This uptick is attributed to the cautious approach of banking institutions, anticipating potential economic tensions or a reassessment of credit risks.It also marks the end of a continuous downward cycle, with rates now stabilizing as markets await clearer signals for the second half of 2025.
Consequently, borrowers aiming to realize their real estate projects still have favorable conditions, but the current trend suggests not delaying too long.In this context, securing a rate promptly and thoroughly preparing the financing application becomes more strategic than ever.
What Mortgage Rates Can You Expect in June 2025 for a Property Purchase?
The mortgage market dynamics remain steady in June 2025, with average rates at 3.12% over 15 years, 3.15% over 20 years, and 3.24% over 25 years.This stability in borrowing conditions, following the slight increase in April, provides reassurance to potential buyers.
Borrowers with strong profiles—significant personal contributions and excellent repayment capacity—can negotiate particularly attractive rates, going as low as 2.85% over 15 years or 2.90% over 20 years.For instance, a couple with a €45,000 down payment and annual income of €65,000 can finance a €300,000 property over 20 years with a monthly payment of approximately €1,650, excluding insurance.
Forecasts for summer 2025 remain encouraging, with the ECB expressing its intention to maintain a borrower-friendly monetary policy.Capifrance advisors support clients in negotiating the best financing conditions with partner banking institutions.
Economic Context: Understanding Mortgage Rate Trends
Impact of ECB Decisions on Mortgage Rates
The European Central Bank's decision on April 17, 2025, to lower its key interest rate to 2.25% marks the seventh consecutive reduction since June 2024.This accommodative monetary policy aims to support economic activity amid international tensions, including new U.S. tariffs.
French banks are gradually adjusting their rate schedules in response to this direction.Despite the recent rise in 10-year OATs to 3.35%, institutions continue to offer attractive financing conditions for mortgage borrowers.
However, the mortgage market remains sensitive to global economic developments.Analysts anticipate that the ECB will continue its strategy to support the economy in its upcoming meeting on June 5, 2025, potentially implementing another reduction in key interest rates to 2%.
Mortgage Rate Forecasts for Late 2025
Market experts project a continued easing of rates through autumn 2025.A scenario with average rates at 2.90% over 20 years could materialize by November, contingent on the stabilization of the international economic context.
The relaxation of lending criteria by banks is expected to enable buyers to benefit from even more favorable conditions in the last quarter.Analysts foresee floor rates of 2.75% over 15 years and 2.85% over 20 years for strong applications starting in October 2025.
Given the persistent tensions in bond markets, a return to the historically low rates of 2019 appears unlikely.Nonetheless, borrowers are advised to finalize their projects this autumn to take advantage of this window of opportunity before a potential tightening of conditions in early 2026.
Stability in the Real Estate Market and Interest Rates
The relationship between the residential market and fixed rates is gradually balancing out in May 2025.Buyers benefit from a favorable period with nominal rates stabilized around 3%, while property sellers enjoy sustained demand, bolstered by new support measures like the expanded PTZ (zero-interest loan).
Analysis of financing requests indicates a return of first-time buyers, encouraged by optimized repayment terms and a better consideration of their stable professional situations.Banks are adapting their lending criteria by more finely integrating household solvency indicators.
The recent decline in the French 10-year government bond yield (OAT) to 3.20% suggests that this balanced momentum could continue into summer 2025, supporting both rental investment projects and primary home purchases.
Loan Simulation and Borrowing Capacity Calculation
Calculating your monthly payments based on loan duration
The accurate calculation of monthly payments for a mortgage requires taking into account several key factors. For a €250,000 loan, the term chosen significantly impacts your monthly payments: expect around €1,450 per month over 20 years, compared to €1,750 over 15 years, excluding insurance.
Extending the loan term lowers your monthly payments but increases the total cost of the loan. A 25-year mortgage generates, on average, 25% more interest than a 15-year loan due to the higher nominal rate and longer duration.
Your Capifrance advisor can help you simulate different financing scenarios tailored to your budget and financial objectives. A personalized analysis allows you to find the best balance between monthly payments and loan duration.
Estimating your maximum borrowing capacity
To maximize your property purchasing power in May 2025, a precise assessment of your borrowing capacity is essential. The loanable amount is calculated using the maximum debt ratio of 35% of your net monthly income, to which personal contributions like the PTZ can be added.
For example, a household with a net monthly income of €4,500 could allocate up to €1,575 per month to mortgage repayments. At a rate of 3.15% over 20 years, this would allow borrowing approximately €315,000.
A stable employment situation and a clean banking history are key criteria to optimize borrowing capacity. A well-prepared loan application increases your chances of securing the most favorable nominal rate from lenders.
25-Year Mortgage: Advantages and Conditions
Opting for a 25-year loan is a suitable solution for ambitious projects in 2025. This maximum authorized term increases borrowing capacity while keeping monthly payments manageable. Banks currently offer competitive annual percentage rates (APRs) of around 3.24% for 25-year mortgages.
Job stability is a determining factor for obtaining approval for such a term. Lenders carefully assess the loan amount and the solidity of the application before granting long-term financing. It’s important to weigh the additional interest cost against the benefit of lower monthly payments.
A Capifrance advisor will guide you through the different banking options and help optimize your 25-year financing plan based on your acquisition goals and monthly savings capacity.
Optimizing Your Mortgage in 2025
Strategies to get the best rate
Given current market conditions, there are three major levers to optimize your mortgage rate. Comparing offers between banks is especially effective in May 2025, with rate differences reaching up to 0.4 percentage points for the same borrower profile.
Improving your loan file is another key factor. A personal contribution of 20% of the project cost, combined with sufficient residual savings after the loan, greatly strengthens your negotiating position.
Flexibility in loan duration also opens attractive options. Although less common, capped variable rates offer favorable conditions, with additional negotiating margins of 0.2 to 0.3 points compared to traditional fixed rates. This may be worth considering if you anticipate income growth in the near future.
When to renegotiate your mortgage
The gradual decline in interest rates since early 2025 presents new opportunities for borrowers who previously financed at higher rates. To make refinancing worthwhile, the remaining loan balance should ideally exceed €150,000, with a minimum gap of 0.7 percentage points between your original rate and current market conditions.
The early repayment phase is generally the best time to revisit your loan terms. For example, a borrower who signed in late 2023 at a rate above 4% can now significantly reduce monthly payments by renegotiating at around 3.15%, depending on the situation. This approach is especially relevant for loans of 20 years or more.
A thorough review of your current financial situation will help assess the relevance of refinancing, factoring in costs such as early repayment penalties or new application fees.
Your Capifrance Advisor Supports All Your Real Estate Projects
In today’s complex market, your Capifrance advisor brings expert guidance to help you secure your financing.
Beyond property searches, they guide you toward the most appropriate solutions for your situation, including refinancing or custom loan structuring.
With in-depth knowledge of local markets—such as in the Pays de la Loire region—and of new client profiles, your advisor anticipates key concerns from the signing of the preliminary agreement to final closing. Their network of banking partners ensures optimal support, even in more complex cases such as usury rate issues or past payment incidents.
This personalized approach allows you to move forward with peace of mind, backed by a dedicated professional who defends your interests and helps optimize your real estate plan.
Selling to buy? Your Capifrance advisor will provide an accurate and professional property valuation to help you sell at the right price and strengthen your budget for your next purchase.
Conclusion
The mortgage market in France remains generally favorable as of June 2025, even though early signs of rising interest rates are starting to emerge. Buyers still enjoy preserved real estate purchasing power, supported by stable mortgage rates, more realistic property prices in the existing home market, and enhanced homebuyer assistance programs, such as the new PTZ 2025.
This temporary period of stability creates a favorable environment for carrying out a real estate project under good conditions. However, waiting could prove risky: a new increase in interest rates this summer would reduce borrowing capacity and directly impact the feasibility of many projects.
Buying now means taking advantage of a still-active market, with a wide range of listings, sellers open to negotiation, and attractive buying opportunities in many regions.
To succeed with your project, you can rely on the expertise of a Capifrance real estate advisor, who will guide you with a precise valuation of your property and a financing strategy tailored to the current market conditions.
Browse our real estate listings of properties for sale across France to find your next primary residence, second home, or investment property.
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FAQ – Frequently Asked Questions
What is the current mortgage rate?
In June 2025, average mortgage rates are around 2.97% over 10 years, 3.08% over 15 years, 3.16% over 20 years, and 3.26% over 25 years. For top borrower profiles, it's still possible to negotiate a rate below 3% on loans up to 20 years.
Will mortgage rates go down in 2025?
After a sharp decline through April, rates have slightly increased since May. A further drop seems unlikely in the short term. The trend is toward rate stabilization.
What is the monthly payment for €250,000 over 25 years?
For a €250,000 mortgage over 25 years at 3.26% taken out in June 2025, the monthly payment excluding insurance is approximately €1,215. This estimate may vary based on your insurance rate and personal contribution.
How is a mortgage rate calculated?
A mortgage rate depends on several factors: loan term, borrower profile, down payment, and the bank’s commercial policy. An online mortgage simulator and the guidance of a Capifrance advisor or broker can help you assess your applicable rate.
What is the insurance rate for a mortgage in 2025?
In 2025, the average borrower insurance rate ranges between 0.25% and 0.40% of the loan amount, depending on age, health status, and the type of contract (group or individual policy).
Author :
Frédéric REMY, Capifrance Network Entertainment Director
"As a real estate professional for several years within the Capifrance network, I would like to share with you some essential advice to help you succeed in your property project with the support of our advisors."
