Record rates for real estate loans

It is in the West, the South West and the Paris Basin that benefit most massively from the lowest mortgage rates in France, and it’s a first!
A famous French real estate broker announced it not long ago: mortgage rates have fallen across the country.

The credits spread over 15 and 20 years have globally lost 0.15 point, against 0.05 point on credits at 25 years. And if the record was recorded in September, it is since about 7 months that we note a sharp decline in the rate of mortgages in the Hexagon . Since the beginning of 2016, we no longer find a rate above 3% for a loan at 20 years.

It’s time to borrow …

Especially if you live in the regions mentioned above. A loan of 20 in the North West is close to the 2.80% rate, against 2.90% in the North (the highest rate in France).

As a result, the period is ideal for first-time buyers and second-time buyers.
The figures are incredible: in Toulouse, where the price of m2 is € 2,470, a buyer could have paid € 33,870 of interest last year for an apartment of 61 m2 with a credit over 15 years, while month, banking fees reach 21 900 €! This is an exceptional figure, and the record of this lucky man was “concrete”, but this kind of figures may become more common in the months to come if the situation remains the same.

… while remaining cautious

If mortgages rates are at their lowest and reach historical records, do not neglect a very important part of real estate news: it turns out that the 10-year Treasury Bond (10-year OAT) comes from suddenly regain 0.20 points in 10 days. This phenomenon is potentially worrying, since the OAT includes all government bonds and is therefore the main index for the interest rate situation.

The causes of this decline

“Guys” of this sudden drop are near-zero inflation and the fact that banks are looking for customers. Indeed, with the rise in the price of real estate, some prospects can no longer afford to invest. As a result, banks lend less. Not by choice, but by inevitability, because they are less consulted. So, to stop this phenomenon, they decided to lower their rates.

Ready for 30: the unexpected come back

Young people and first-time buyers (so, the tightest budgets) are particularly pleased with this news, because they can claim to make a loan over 30 years.

Those who did not hope to borrow (because of the high rates on the shortest time) can finally consider buying real estate . These are the two categories that borrow the most over 25 years (17.5%) and are therefore the most likely to borrow over 30 years.
However, this does not detract from the fact that they will have to carefully compare the offers of different banking organizations!

To come up

The decline in mortgage rates should continue its momentum in the coming months, especially in October. It turns out that this month is known to be that of real estate investments. As a result, buyers will surely benefit from new record rates, taking interest at 2.60%.

 

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