How far will mortgage rates fall?
The records of May 2015 have been briskly beaten in recent weeks. “The rates are 0.15% lower than in May 2015. Some borrowers get into debt at 1.5% over 10 years, excluding insurance, 1.3% over 15 years and 1.95% over 25 years”, note Sandrine Allonier, director of banking relations of Vousfinancer.com. Never seen! Today, the French average debt to 1.85% over 15 years, 2.07% over 20 years and 2.38% over 25 years, underlines the broker Meilleurtaux.
The decline in mortgage rates has accelerated since February. Banks, which had a bad start to the year in terms of the mortgage, take advantage of spring, the period preferred by the French to become owners, to launch offensive offers. This is all the more likely as the rates of the 10-year OAT, which serves as a benchmark for fixed-rate loans, fell to 0.47%. “Since the beginning of the year, average rates have dropped by 0.35%, saving a loan of 200,000 euros over 20 years of nearly 8,000 euros,” says Maël Bernier, director of communication of Meilleurtaux.
The best rates are in Metz
The best credit rates always vary from one region to another, according to the barometer of Vousfinancer.com. In Metz (1.50% excluding insurance), Toulouse (1.51%), Rennes (1.51%), it is possible to obtain the best loan conditions over 20 years- go right here stepsontheroad.org/handle-needless-fees-from-banks-to-cash-advance-lenders/ Stepsontheroad. These major cities are followed by Lyon (1.6%), Montpellier (1.63%) and Bordeaux (1.65%). In Lille, borrowers get the best debt at 1.7%, Grenoble at 1.75% and Clermont-Ferrand at 1.9%. At the moment, regional banks are the most competitive, according to the barometer.
Thanks to the PTZ and very low borrowing rates, first-time buyers are returning to the market.
Of course, these exceptional conditions remain reserved for the “best customers”. “Those who benefit from very low rates have high incomes and 10% contribution to a minimum. Banks are seeking to attract a clientele with high potential, allowing the establishment of a long-term relationship, “confirms Sandrine Allonier. Married couples with children, a CDI each (or liberal profession), comfortable incomes and savings remain the most sought after.
However, “banks are currently less selective than a year ago. They agree to lend again over 25 years. First-time buyers with whom the entire banking relationship is to be built are also a preferred target, “said Jérôme Robin, President of Vousfinancer.com. With the coming into force in January of a new, more flexible and generous Zero Rate Loan (PTZ) formula, many young buyers can access the real estate market. For Cafpi, it’s starting to pay off. “While they have been around one-third of CAFPI’s customers for several years, their share has just risen to 40 percent. The redevelopment of the zero rate loan, the current credit conditions, “notes the broker.
In the medium term, mortgage rates are likely to remain low, or even fall a little, as interest rates will remain very low for the long term in the euro area.