In March 2025, the mortgage market continues to evolve favorably for borrowers, and this is great news for property sellers! Indeed, the decline in interest rates has been ongoing since 2024 and the start of this year, reaching increasingly attractive levels.
The conditions are favorable for buyers, as it is now possible to secure a mortgage rate under 3% in March 2025 by negotiating with banks for loan terms of 10 years, 15 years, and sometimes 20 years.
In this article, we review the average rates and the lowest rates observed, with an analysis of recent interest rate trends and some forecasts for the rest of 2025.

Mortgage Borrowing Rate Barometer for March 2025 by Loan Term

The average mortgage rates in France for March 2025 are as follows:

Source: Cafpi

Analysis of Average and Negotiable Rates

The analysis of the rates shows that the average rates remain slightly above 3% for all terms. However, the best borrower profiles can secure negotiated rates below 3% for loans of 10 years, 15 years, or 20 years, by optimizing their file (personal contribution, financial stability, good level of residual savings) and leveraging bank competition.

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Evolution of Mortgage Interest Rates in March 2025

Comparison with Previous Months' Rates

Here is the evolution of rates over the past few months:

Overall Trend: The Decline in Mortgage Rates Continues Below 3%!

Building on the mortgage rates of February 2025, several factors explain this continued decrease at the start of the year.

Monetary Policy of the ECB

Since June 2024, the ECB (European Central Bank) has initiated a series of rate cuts to support the Eurozone economy. At its meeting on January 30, 2025, it reduced its rates by 0.25 percentage points, bringing the refinancing rate to 2.90% and the deposit rate to 2.75%. This accommodative monetary policy aims to encourage banks to lend more, resulting in lower interest rates for borrowers.

Inflation Under Control for Several Months

Inflation in the Eurozone has gradually decreased, reaching 2.4% in December 2024. This stabilization of prices allows the ECB to maintain a favorable monetary policy, thus contributing to the decrease in interest rates.

Intense Bank Competition

Financial institutions are intensifying their efforts to attract new customers by offering competitive mortgage credit deals. This increased competition leads to a reduction in margins and, consequently, to more attractive interest rates for borrowers. Some banks are once again targeting borrowers with rates below the symbolic 3% mark.

Economic Context Stabilizing

The gradual economic recovery, supported by positive indicators such as declining unemployment and household confidence, is prompting banks to relax their credit conditions, thus facilitating access to mortgage financing.

In Summary, the Combination of a Favorable Monetary Policy, Controlled Inflation, Dynamic Bank Competition, and an Improving Economic Context Contributes to the Continued Decline in Mortgage Rates in March 2025.

Towards the Stabilization of Mortgage Rates Below 3%?

If the current trend continues, rates may continue to decrease slightly by the summer of 2025. Several experts anticipate a stabilization between 2.80% and 3.10% for the best borrower profiles, especially for terms of 10 to 20 years.
However, this trend remains dependent on the future decisions of the European Central Bank (ECB), which may adjust its monetary policy based on growth and inflation.

Advice for Borrowers in March 2025

How to Secure a Mortgage Below 3%? Here are some tips to maximize your chances of negotiating the best bank loan conditions for

purchasing property.

Present a Good File

•  Personal contribution of at least 10 to 20% of the purchase price.
• Professional stability: Permanent contract, self-employed with regular income.
•  Limited debt: Debt-to-income ratio under 35%.
  
  

Leverage Bank Competition

•  Compare bank offers with a mortgage broker.
•  Negotiate the loan conditions in detail: rate, borrower’s insurance, processing fees.
• Opt for a shorter loan term: rates are always more attractive for 10 or 15 years.
  
  

Anticipate Future Rate Changes

• If a rate decrease is expected, a capped adjustable rate mortgage may be an option.
• Consider refinancing if rates continue to drop in the coming months or years.

Advice for Property Sellers in 2025

Selling in a Context of Decreasing Rates

For sellers, the return of rates below 3% is good news, as it means that buyers are regaining purchasing power in line with their project and can thus buy more square meters. Here are three key recommendations for effectively selling your property in 2025:

Offer an Attractive and Justified Price

• Take into account local market prices in March 2025.
• Obtain a detailed property valuation from your Capifrance expert advisor.
• Consider the local supply of competing properties.
• Anticipate the time it takes to secure financing: about 45 to 60 days in 2025.

Enhance the Property with Home Staging and Energy Renovation

• Seek advice from your Capifrance sales agent with virtual home staging services.
• Adapt to buyers' new expectations in terms of housing.
• Highlight good energy performance, benefiting from government assistance to renovate and improve the property’s Energy Performance Certificate (DPE) in 2025.

Conclusion: The Favorable Trend for the Real Estate Market in March 2025 is Confirmed

March 2025 marks the return of mortgage rates below 3% for the best borrower profiles and the most competitive bank offers. This decrease increases the purchasing power of buyers, which revives projects for first-time buyers and investors who can obtain financing under favorable conditions.

To make the most of this opportunity, the support of a Capifrance real estate advisor is essential. In partnership with mortgage brokers, our experts are available to help you secure the best financing and carry out your real estate project under the best conditions.

Need personalized advice for your purchase or sale project? Contact your local Capifrance advisor now for a free property valuation or to obtain a negotiated loan offer from our financial partners.

Author:

Frédéric REMY, Director of Commercial Performance at Capifrance

"An expert in the real estate sector for several years within the Capifrance network, I wish to share essential advice to help you succeed in your real estate project with our advisors."