François Villeroy de Galhau, Governor of the Bank of France, reported a decline in mortgage interest rates, dropping below 3.4% in November 2024 from 4% in January. This reduction results from decreasing inflation, which he expects to stabilize around 1.5% in 2025. Villeroy noted that the lower interest rates will enhance purchasing power and encourage borrowing among the French, signaling a potential recovery in the real estate market. He also predicted that the European Central Bank may lower its rates to near 2% by summer due to falling inflation.

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