This month saw the average rates crash as the main indices hit their historic lows. Fixed rates are now at their lowest ever point despite the higher bank margins. A 20 year fixed rate can now be found at 3.70% and variable rates are at 2.50% for the same period.
Both the TEC 10 index, which gives a view of long-term rates, and the 3 month Euribor, which governs the majority of variable rate mortgages, have shattered their previous lows. In mid-July the Tec 10 hit 2.05%, down from a previously all-time low of 2.60% heralding even lower fixed rates in the coming months. The previous low of the 3 month Euribor was 0.63% in August 2010 now stands at 0.415% in July.
Whilst these index falls reflect a lack of confidence in the Eurozone, there are reasons to be more positive. Mario Draghi and Angela Merkel have recently come out fighting with the man from the ECB saying he will do what it takes to save the Euro. While they are working that out, it is a good time to secure your long term French mortgage before confidence rises again which will push up French property prices and the rates for mortgages in France.