France: the average rate on new housing loans edged up to 3.32% in August

French banks charged 3.32% on new home loans in August, two basis points more than in July, while new lending rebounded to 12.2 billion euros.

The facts

The average interest rate on new housing loans excluding renegotiations was 3.32% in August 2026, up from 3.30% in July.
Seasonally adjusted new housing lending rebounded to 12.2 billion euros, from 11.1 billion euros the previous month.
The outstanding stock of loans for house purchase stood at 1,288 billion euros at the end of August, with an annual growth rate of 0.2%.
Consumer credit outstanding was 220 billion euros and grew 2.1% over the year; new consumer lending was 5.5 billion euros at an average rate of 6.04%.

A French mortgage now prices at 3.32%, two basis points above July. For a leveraged purchase that is the base cost of money.
Lending volume recovered after a weak July: 12.2 billion euros of new housing loans were written in August against 11.1 billion in July.
Financing cost depends on the instrument. New consumer credit carried 6.04% in August against 3.32% on housing loans, both from the same release.
Then the tax. Our own standardised non-resident case for France is a 27.5% effective tax on rental income, and the rent level decides whether the band sits near 26.04% or near 37.86%.

Watch the 0.2% annual growth of the housing loan stock alongside the monthly new-lending figure.
The 3.32% excludes renegotiations, so it describes the cost of new borrowing and not the rate carried by the existing stock.
Our own French entry figures, 3,642 dollars per square metre against 16.23 dollars per square metre a month for a 5.35% gross yield, carry a January 2026 reference month on both sides and are not an August reading.

Sources: Banque de France https://www.banque-france.fr/en/statistics/loans/loans-individuals-france-2026-08

Market data: France