#REAL ESTATE
“Mortgage rates, the rise is over.” Not yet: in September 2026 the average mortgage rate hit 3.40%, up from 3.16% at end-2025 — for an average term of 21 years.
Published on October 25, 2026 · to be rechecked on December 31, 2026
According to the Crédit Logement/CSA Observatory (September 2026 data, published 15 October), the average mortgage rate stands at 3.40%, up from 3.31% in August and 3.16% in December 2025. For the whole third quarter, the average is 3.32%. The average term reaches 252 months, i.e. 21 years, and nearly one loan in two is granted over 25 years or more — a lengthening that helps keep borrowers solvent despite higher rates. Loan production nonetheless fell 9.2% year-on-year in the third quarter.
Is a 3.40% rate expensive for a mortgage?
It’s relative: more than in 2021 (around 1%), but far below 1990s rates (8% and up). What matters for the borrower is the total cost and the monthly payment — hence longer terms (up to 25 years and more) to keep payments manageable.
In other words: when rates rise, lengthening the term keeps the monthly payment affordable — but you pay more interest overall.
Four caveats that belong with the number
- 3.40% is an average: the actual rate depends on the profile (down payment, income, term) and can be lower or higher.
- Lengthening the term (21 years on average, often 25) lowers the monthly payment but raises the total cost of the loan.
- The 3.16% at end-2025 confirms the rise: +0.24 point in nine months.
- Loan production is falling (−9.2% year-on-year in Q3): a less dynamic market.
Why it still matters: for the borrower: compare the total cost (not just the monthly payment), negotiate the insurance, and use the down payment and term. The term isn’t free: the longer it is, the more the loan costs.
For you
- Can you tell the difference between a monthly payment and the total cost of a loan?
- Between a lower rate and a shorter term, which weighs more on the cost?
Sources: Crédit Logement/CSA Observatory, Q3 2026 analysis (September data, published 15 October 2026).
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