Mortgage rates in France fell to their lowest level ever in May due to competition between French banks and the ECB's low-interest-rate policy, French mortgage analysis group Observatoire Crédit Logement CSA, said in its monthly mortgage report on June 4.

The average mortgage rate was 1.29% in May, lower than a previous record of 1.33% in November 2016.

French mortgages are generally fixed rate, and low interest rates have led to a wave of renegotiations and fierce competition.