Paris, July 08 (QNA) - The French central bank released data showing that the value of new mortgage loans extended to individuals declined in May for the second consecutive month, eloquently indicating that the housing market slowdown remains underway.
In a statement on Wednesday, the bank said the value of new mortgage loans, excluding loan renegotiations, stood at EUR 11.4 billion in May, the lowest level since January, compared with EUR 11.9 billion in the same month last year.
The statement ascribed the decline in part to an increase in the average mortgage interest rate to 3.21% between the beginning of the year and May, up from 3.09% during the second half of 2025, leading to higher borrowing costs and weaker demand for mortgage financing.
The bank noted that the mortgage lending market underwent a marked contraction between mid-2022 and early 2024 as tighter monetary policy and higher interest rates were put in place to combat inflation, before interest rates edged up again at the beginning of 2026. (QNA)