In September 2025, mortgage rates are showing signs of stabilization after several months of fluctuations. This easing allows both borrowers and sellers to regain visibility on their real estate projects. In this article, Capifrance deciphers current interest rates, market trends, and best practices to buy or sell at the right time.
Context and Recent Evolution of Mortgage Rates
A Stabilization of Mortgage Rates Since Spring 2025
Since April, mortgage rates have been gradually stabilizing after a continuous increase in 2023 and early 2024. Most borrowers are now benefiting from more favorable financing conditions than a year ago, with the current mortgage rate averaging around 3.10% over 20 years as of September 2025.
This easing can be attributed to several factors: declining inflation, less pressure on bond markets, and a more transparent monetary policy from the European Central Bank. Banks, while still cautious, are slowly reopening access to credit for financially sound borrowers.
Mortgage Rate Trends Observed in Summer 2025
Throughout summer 2025, broker barometers confirmed the stabilization of loan rates. Over three consecutive months, average mortgage rates showed little variation, with increases limited to 0.05 to 0.10 percentage points depending on the loan duration. In July and August, some banks even launched limited-time promotional rates as part of commercial campaigns.
The return of competition enables some borrowers to negotiate better rates, particularly for shorter durations (10 to 15 years), where differences between minimum and standard rates remain significant.
A Cautious Outlook Despite a More Favorable Real Estate Climate in France
Despite a more favorable dynamic, credit approval conditions remain stringent. The usury rate, updated monthly, continues to limit the ability of banks to lend to certain profiles (particularly seniors, borrowers without a down payment, or those on temporary contracts).
Additionally, borrowing capacity remains constrained by high property prices in tight markets, even though the rate environment brings some relief.
Key point: the current climate is calmer than in 2024, but a widespread return to sub-3% rates is not yet a reality. Borrowers must stay alert, compare offers, and rely on professionals to optimize their real estate projects.
Real Estate Rate Barometer — September 2025
Average Market Rates
As of early September 2025, mortgage interest rates remain generally stable compared to the previous two months. According to CAFPI's rate barometer, the following averages apply to fixed rates excluding insurance:
| Loan Term | Lowest Rate | Average Rate | Standard Rate |
|---|---|---|---|
| 10 years | 2.79% | 2.99% | 3.48% |
| 15 years | 2.85% | 3.11% | 3.71% |
| 20 years | 2.94% | 3.18% | 3.84% |
| 25 years | 3.06% | 3.29% | 3.98% |
These average mortgage rates indicate a more predictable market after the significant increases seen in 2023–2024. Borrowers can now more confidently calculate the total cost of their loans, especially since standard rates may still be negotiated for strong profiles.
Interest Rate Differences Based on Borrower Profiles
Banks continue to apply differentiated pricing based on borrower profiles. A client with a strong down payment, low debt-to-income ratio, and stable employment can still access rates below 3% over 20 years.
Conversely, "riskier" profiles (temporary contracts, low income, high debt, little savings) are often offered near-standard rates—or even denied loans due to the still-restrictive usury rate.
Key Factors Influencing Mortgage Rates in September 2025
The evolution of mortgage rates remains tightly linked to several macroeconomic factors, including:
The European Central Bank’s key interest rates, which remain high to curb inflation;
The government bond market, especially the 10-year OAT (Obligations Assimilables du Trésor), which is a reference for banks;
The commercial strategy of banks in the post-summer period, often more aggressive to attract new clients.
The economic slowdown in the Eurozone may hint at a medium-term rate decline, though this scenario will depend heavily on future monetary policy decisions.
Changes in Mortgage Rates Compared to Previous Months
Compared to August, current mortgage rates are largely unchanged, with slight increases on longer durations. Summer confirmed the end of the rapid rate hike phase that began in late 2022, with stabilization around 3.10% on average for 20-year loans.
This stability is seen as a reassuring sign for back-to-school real estate plans, especially for first-time buyers waiting for calmer waters.
Analysis of the Total Cost of a Mortgage in 2025 at Current Rates
Even with more stable rates, the total cost of a mortgage remains high compared to 2019–2021 levels. For a 25-year loan at 3.29% excluding insurance, interest costs represent a significant share of the loan’s total expense.
It is therefore essential to evaluate:
your real borrowing capacity (income, expenses, debt ratio);
the optimal amount of down payment to reduce interest;
additional costs (guarantees, borrower insurance, application fees, etc.);
and to compare offers using a mortgage calculator or with the help of a broker.
Forecasts: What’s Ahead for Mortgage Interest Rates?
Stabilization in Progress… But an Uncertain Future
During Q1 2025, mortgage rates dropped significantly—by about 22 basis points on average (about 7 points per month). These improvements were driven by the European Central Bank’s decisions to cut its key rates twice in spring (from 2.65% to 2.15%).
Since that spring momentum, average rates have stabilized around 3.07% in July 2025 (excluding insurance and guarantees), according to the Crédit Logement/CSA Observatory.
Macro-Economic Levers Are Still Pressuring Rates
Despite this pause, several influencing factors suggest caution:
Fragile recovery in loan demand, with a hesitant rebound in mortgage origination;
Ongoing tensions in bond markets, with rising yields squeezing bank margins;
Uncertain geopolitical and economic climate, leading banks to be more selective with riskier files.
These indicators point to a cautious climate in the coming months, especially for borrowers with weaker financial profiles.
Outlook for Late 2025 and Early 2026
Most forecasts converge on a “soft landing” scenario: no sharp hikes, but a likely moderate rate increase in 2026—potentially reaching 3.40% by year’s end, with an average annual rate of 3.31% (compared to 3.11% in 2025).
Late 2025 should see selective promotional efforts from banks to sustain loan volumes, though caution will prevail amid a possible rise in defaults.
The Return of Positive Real Interest Rates
A key development: despite still-volatile inflation, real interest rates on mortgages have been positive again since summer 2024, after a long period of negative real rates. This shift increases pressure on household solvency, as borrowers’ purchasing power is squeezed by the gap between inflation and interest rates.
What Advice for Buyers in September 2025?
In a context of stabilized mortgage rates around 3%, potential buyers should adopt a clear and well-prepared strategy. While the mortgage market is experiencing a slight lull, banks remain selective, requiring solid applications. Here are the key areas of attention and levers to activate to optimize your real estate project in fall 2025.
Prepare Your Application Well to Convince Banks
Banks remain cautious in analyzing applications, even though average interest rates have stopped rising. Job stability, regular income, and a manageable debt ratio (<35%) remain essential criteria. Highlight your stable professional situation, savings efforts, and anticipate requests by attaching all necessary supporting documents.
Tip: Use a mortgage broker to enhance your application and negotiate the best terms with banks.
Build a Strong Down Payment to Improve Borrowing Capacity
In September 2025, having a substantial down payment is a real asset. Banks typically require between 10% and 20% of the property price, especially to cover additional costs (notary fees, guarantees, application fees). A solid down payment can also help you negotiate a lower nominal rate.
Reminder: A down payment isn’t mandatory, but it strengthens your borrowing power and credibility with lenders.
Compare Offers and APR, Not Just the Nominal Rate
With the rise of real interest rates, it’s essential to compare loans not only based on their borrowing rate but also on their APR (Annual Percentage Rate). This includes all loan-related costs: insurance, guarantees, application fees, etc. Two offers with the same nominal rate may differ significantly in total cost.
Use a mortgage calculator or online credit simulator to estimate your monthly payments and total cost. Make sure to understand the differences between nominal, variable, and fixed rates. When in doubt, seek advice from a mortgage broker.
Match the Loan Duration to Your Life Plans
Choosing the right repayment term is strategic. In September 2025, the average rate is 3.18% over 20 years and 3.29% over 25 years. The longer the term, the higher the total cost of the loan—but the lower the monthly payment. Consider your savings capacity, family plans, and financial buffer.
Good to know: Shortening the loan term helps reduce interest costs—if you can afford a higher monthly payment.
Don’t Wait Indefinitely for Lower Rates
Even though rates dropped in spring, the current trend is toward stabilization or a gradual increase starting in 2026. Postponing your project in hopes of significantly lower rates may backfire. The key is to act when the timing is right—by locking in a fixed rate once your property project is ready.
Current average rates are historically reasonable: for many households, it’s an opportunity to seize before the next upward cycle.
Leverage Competition and Simulation Tools
Never settle for a single bank offer when financing a real estate purchase. Compare proposals across lenders and use multiple online mortgage simulators to evaluate the impact of a rate (fixed, variable, APR), term, or down payment. This helps optimize your real estate project and increases your negotiation power.
Simulate different scenarios using online tools (CAFPI, Crédit Logement, Capifrance…) to determine the best buying strategy.
What Advice for Sellers in a Stabilized Rate Market?
With mortgage rates stabilizing around 3% in September 2025, the real estate market remains active yet selective. Buyers are better prepared and more attentive to consistency between asking price, borrowing rate, and total project cost. In this context, sellers must adjust their listing strategy to attract and convince buyers quickly.
Adjust the Asking Price to Reflect Local Market Reality
With mortgage rates affecting buyers’ borrowing capacity, realistic pricing is crucial. Buyers calculate their budget based on monthly payments, down payments, and lending conditions.
Tip: Get a professional property appraisal and compare it with similar recently sold properties in your area. The asking price should reflect the actual level of local demand.
Enhance the Property to Reassure Buyers
In a more rational economic climate, buyers seek well-maintained properties with no unpleasant surprises. A good presentation and up-to-date diagnostics can make a difference—as well as clearly showcasing the property’s strengths (insulation, features, orientation...).
Tip: Investing in minor renovations or light home staging can improve the visit experience and shorten time on market.
Be Flexible With Sales Conditions
A buyer may need time to secure financing, especially as mortgage approval timelines now average 45 to 60 days. Offering an appropriate contingency clause or accepting longer deadlines can expand the pool of eligible buyers.
Tip: Don’t automatically rule out buyers who haven’t yet received final loan approval—if they have a strong application and sufficient down payment.
Account for the Impact of Rates on Negotiations
Interest rates directly affect buyers’ negotiating room. A buyer borrowing at 3.2% over 25 years is more sensitive to the final sale price than when borrowing at 1.5%.
It’s therefore likely that negotiation margins will remain high on certain properties, especially in less attractive areas or for energy-inefficient homes.
Work With a Professional to Maximize Your Chances
In September 2025, selling on your own is a risky move. Market conditions vary widely by region, and buyers are better informed and more demanding. An experienced real estate advisor helps you:
Set the right asking price;
Write a compelling listing;
Screen the best buyer profiles;
Guide the negotiation through to the final sale.
At Capifrance, advisors support sellers from valuation to final signing, combining local expertise with strong digital tools.
Conclusion — 5 Key Takeaways About Mortgage Rates in September 2025
In September 2025, average rates stabilize between 3.10% and 3.30%, depending on loan term—a good sign for borrowers.
ECB monetary policy remains pivotal for future interest rate drops.
Buyers can optimize borrowing power by adjusting down payment, loan term, and comparing rates with a professional’s help.
Sellers should align asking prices with local market trends and anticipate buyers’ financing constraints.
Partnering with a Capifrance real estate professional helps secure every step of your buying or selling journey.
Read More on the Capifrance Blog:
News – Mortgage Rates in August 2025: Analysis and Forecasts
News – Mortgage Rates in July 2025: Trends and Insights
News – Mortgage Rates in June 2025: What to Know
News – Mortgage Rates in May 2025
News – Mortgage Rates in April 2025: Spring Update
News – Mortgage Rates in March 2025 Below 3%
News – Mortgage Rates in February 2025: Trends and Forecasts
FAQ: Frequently Asked Questions About Mortgage Rates in 2025
What is the current mortgage rate in France?
In September 2025, the average mortgage rate is around 3.29% over 25 years, 3.18% over 20 years, and 2.99% over 10 years. These vary based on borrower profile, down payment, and loan term.
What is the mortgage rate over 25 years?
The average rate over 25 years is 3.29%, with the best rates negotiated around 3.06% according to brokers. Rates vary depending on the bank and the strength of the applicant’s file.
What is the mortgage rate over 10 years?
In September 2025, the 10-year mortgage rate ranges from 2.79% for top profiles to 3.48% at the standard scale. This term offers the lowest rates but comes with higher monthly payments.
What mortgage rate can you get in 2025?
In 2025, a borrower with a solid down payment and stable income can aim for rates between 2.80% and 3.10% depending on the loan term. The best applications benefit from preferential terms at select banks.
When will mortgage rates go down?
According to the latest analyses, mortgage rates could begin to decrease gradually at the end of 2025 or early 2026—depending on whether the ECB continues easing its monetary policy. A moderate turnaround is expected, but drops will likely be slow and limited.
Will mortgage rates fall in 2025?
A significant drop is unlikely in the short term, but a slow downward trend is expected. The market depends on ECB policy, inflation levels, and housing market dynamics.
Why are mortgage rates increasing?
Rates surged between 2022 and 2024 in response to high inflation and ECB rate hikes. The goal was to cool down the economy and stabilize consumer prices.
Why are mortgage rates not decreasing (or decreasing slowly)?
Rate trends depend on global economic conditions, ECB decisions, and banks’ willingness to lend. Even during stable periods, banks remain cautious, limiting rapid rate declines.
How do mortgage rates work?
A mortgage rate is the nominal interest rate applied by the bank to your loan. It determines the interest you pay on the borrowed amount. There are several types: fixed, variable, or adjustable.
How is the mortgage rate calculated?
The mortgage rate is calculated by comparing loan offers, factoring in the APR (Annual Percentage Rate) which includes application fees, borrower insurance, guarantees, and the nominal rate.
How can I negotiate a lower mortgage rate?
To negotiate, present a strong file: high down payment, manageable debt level, stable job, and clean credit. Use competition between banks or hire a broker to help secure better terms.
When should I renegotiate my mortgage rate?
Renegotiate if the current market rate is at least 0.70 to 1 point below your contract rate. This can lower monthly payments or shorten the loan term. Also consider renegotiation or buyout fees.
What’s the monthly payment for €140,000 over 25 years?
For a €140,000 loan over 25 years at an average rate of 3.29%, the monthly payment (excluding insurance) is around €680–€700. Total loan cost also depends on insurance and additional fees.
How to get a low mortgage rate?
To get a low rate, improve your borrower profile: high down payment, stable income, low debt. Prepare in advance and shop around. A mortgage broker can also enhance your application to secure better rates.
Author :
Frédéric Rémy – Director of Commercial Performance
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 real estate project with the support of our advisors.
