T
he French mortgage credit market is showing signs of a strong recovery after a long period of stagnation. Loan demand has nearly doubled in two months, driven by a drop in interest rates and the reopening of bank lending. The average rate for home loans fell to 3.13% in April, down from 4.2% at the beginning of the year.

    Real estate prices are rising again after eighteen months of decline, and loan demand has seen a strong rebound since spring. According to the Bank of France, new loans reached 12.6 billion euros in April, compared to 6.9 billion euros in February. The trigger for this turnaround was the marked drop in interest rates.

    However, economic uncertainties, supply pressures, and the ECB's future decisions keep the recovery fragile. An increase in the average rate was observed as early as May, marking a first inflection since December 2023. This rise affects all types of projects and durations, indicating that the current window may close more quickly.

    Banks are gradually easing their scales, reinjecting liquidity into a market previously clogged by high credit costs. However, this momentum remains fragile, and borrowers are considering alternative financing methods, such as mobilizing capital gains from crypto investments. The mortgage credit recovery is undeniable, but it still rests on uncertain grounds, with recent signals suggesting that the positive cycle could be short-lived.

    The coming weeks will be decisive in determining whether this awakening is a temporary rebound or the start of a new structural cycle.