French Mortgage Market Shows Signs of Cooling as ECB Hikes
- Growth in home loans likely slowed further to 6% in October
- Borrowers in France have among the lowest costs in Europe
Homes in Lens, France.
Photographer: Anita Pouchard Serra/BloombergThis article is for subscribers only.
Growth in French mortgage lending slowed to the weakest pace this year in September as the European Central Bank’s rate hikes began to dent demand in the euro area’s second-largest economy.
Outstanding lending for home purchases grew 6.2% from a year earlier after rising 6.3% in August, and the Bank of France said early indicators show a further slowdown to 6% in October. The average interest rate for new housing loans is estimated at 1.79% in October -- the most expensive since 2016.