Even the best things have an end. After fifteen months of dramatic decline, the rate of credit real estate resumed the path upward in the previous month. Banks currently lend on average to 1.60% over 20 years, 0.10 points more than at the end of November 2016, according to Meilleurtaux.com. The rise remains very limited, but it marks the end of the blessed period of credit less and less expensive for the candidates for real estate acquisition.
“The banks gradually send us their new scales. We should reach 1.70% on average over twenty years by a fortnight, “said Mael Bernier, spokesman for the online broker.
In case, the 10-year OAT, the state loan as a reference for banks to fix the rate of their mortgage, which is abruptly increased from 0.30% at the end of October to 0.80% in late November. “Banks revise their schedule on the rise but the increase is not uniform: it varies from 0.05 points to 0.20 points over the periods of credit and the borrower’s profile,” says Sandrine Allonier, Director Of the banks’ dealings with the Youfinancer broker.
The rates of mortgage loans remain very low despite the reversal of the trend. For the record, banks lent on average 2.40% in January 2016 according to MeilleurTaux.com. This very sharp decrease and the passage below the symbolic threshold of 2% in the spring have also boosted the real estate market. The Century 21 network announced 15.6% more transactions last year, especially as stone prices rose moderately.
“The decline in lending rates was the main driver of the market’s dynamism last year. Buyers have recognized the need to take advantage of exceptionally low rates “confirms Sébastien de Lafond, president of Meilleursagents.
For first-time buyers in particular, the economy is substantial: the total cost of a credit of 200,000 euros over 20 years has increased from 52,021 euros in January 2016 for a credit to 2,40% to 33,836 euros in January 2017 to 1.60% according to Meilleurtaux.com. That is a saving of 18 185 euros, for a monthly payment passed from 1 050 euros to 974 euros.
If banks have boosted the market in recent months by lending at very attractive rates, the recent recovery, however modest it may be, raises questions – rapid surge in credit rates can seize the momentum. “The nques ba credit have ambitious production targets for 2017. They know they have to limit rate increases to take , particularly in an election year,” relativize Ms. Bernier.
The presidential elections traditionally creates a wait among buyers who prefer to wait until after the election and the first steps on the housing to decide . “The elections will certainly curb the market, but is expected to remain robust in the context moderate increase of credit rates”, analyzes Mr. Lafond.