Paris: 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, indicating that the housing market slowdown remains underway.

According to Qatar News Agency, in a statement on Wednesday, the bank reported that the value of new mortgage loans, excluding loan renegotiations, was EUR 11.4 billion in May. This marks the lowest level since January, compared with EUR 11.9 billion in the same month last year.

The statement attributed the decline partially to an increase in the average mortgage interest rate, which rose to 3.21% between the beginning of the year and May, up from 3.09% during the second half of 2025. This increase in interest rates has led to higher borrowing costs and consequently weaker demand for mortgage financing.

The bank also noted that the mortgage lending market experienced a significant contraction between mid-2022 and early 2024, as tighter monetary policy and higher interest rates were implemented to combat inflation. Interest rates then saw another rise at the beginning of 2026.