Real estate credit rates slow down

The majority of banks have not increased their mortgage rates, according to the figures reported this week by major brokers. Good news for individuals who will have to keep an eye on some hot issues.

Those who are on vacation and thinking about buying a house soon, don’t worry! The summer period, usually more agitated in terms of mortgage rates, is rather quiet.

The average rates out of ten (1.30%), twenty (1.80%) and thirty years (2.85%) show very slight increases, but not enough to curb the borrowing capacity of purchasers. Over the last fifteen and twenty-five years, rates remained stable at 1.55% and 2% respectively, according to Empruntis. “It is interesting to note that this year we are not witnessing the traditional hike in rates imposed in previous years by banking institutions in the course of the summer, in order to try to discourage those least motivated, emphasizes Maël Bernier of Meilleurtaux.com.

Why have rate increases calmed down? Because OATs, on which financial institutions rely to establish their mortgage lending rates, are still at very low levels (between 0.8% and 1%), although they have risen somewhat in recent months. This allows banks to maintain a comfortable margin, which maintains low rates for individuals, offset by strong increases in real estate prices, in Paris as well as provincial cities such as Bordeaux or Rennes.