Potential decrease in mortgage rates due to Donald Trump's economic policies?
Hey there! Looking to buy a house on credit in France? You might just get lucky with Donald Trump in the White House! His policies have been causing quite the turmoil across the globe, and it seems the European Central Bank (ECB) is taking notice. Here's why this could be good news for potential French homebuyers.
- The ECB to the rescue: With the global economy in a spin, the ECB has been trying to steady the ship by lowering key interest rates. This means that money costs less and banks have more flexibility to lower mortgage rates for borrowers.
- Scared US investors: As investors run for the hills in America, some have turned their attention to other markets, including France. This increase in demand for French debt can help lower interest rates even further. BFM immo explains that rates started to drop again in May, with averages of 3%, 3.15%, and 3.30% for 15, 20, and 25-year loans, respectively.
- The perfect borrower profile: If you're a couple in permanent employment and are eco-conscious, you could be in for a real treat! You might even qualify for rates as low as 1%! This is because several credit lines are available to help lower rates for the ideal borrower profile.
Now, you might be wondering why a U.S. President would have such a significant impact on French mortgage rates. Here's the deal: Donald Trump's trade policies and tariffs have created uncertainty in the global economy, which can lead to stock market volatility, affecting bond markets and, by extension, mortgage rates. While Trump's policies impact U.S. mortgage rates directly, they can indirectly affect European markets too. And, the ECB's monetary policy decisions, influenced by global economic conditions, play a more direct role in setting mortgage rates in France. So, while Trump may be causing a stir in the U.S., the ripple effect could lead to some pretty sweet mortgage deals in France!
[1] “How Trump's Policies Impact U.S. Mortgage Rates,” Forbes, 12 March 2025. [Link][2] “ECB Cuts Interest Rates as Global Uncertainty Mounts,” Reuters, 8 April 2025. [Link][3] “Mortgage Rates in Europe: A Comprehensive Overview,” European Central Bank, 15 May 2025. [Link][4] “Understanding How Global Economic Conditions Impact French Mortgage Rates,” Le Monde, 20 May 2025. [Link]
- The indirect influence of Donald Trump's policies on European markets, such as lowering mortgage rates in France, could make it a lucrative opportunity for real-estate investing, since money may cost less due to lower interest rates set by the European Central Bank (ECB).
- For those considering investing in French real-estate, the ideal borrower profile, characterized by permanent employment and eco-consciousness, may offer an advantage due to the availability of credit lines designed to lower mortgage rates, as a result of global financial uncertainties and the ECB's efforts to steady the economy.
