The rise in prices but especially a strong wait-and-see attitude, linked to the deterioration of the economic situation, prompted many potential buyers to postpone their real estate project. However, mortgage rates have never been so low and banks are still positioned and are very present in the credit market to win new customers.
The end of 2012 was marked by a steady fall in interest rates, with an average fixed rate of 3.23% in December (Observatoire Crédit Logement). In early 2013, the process continues, the best profiles of borrowers can currently get a rate of 3.20 over 20 years. This beginning of the year starts therefore in a rather favorable context for the candidates for the loan. With particularly attractive interest rates, there are real opportunities for borrowers to seize. Especially since banks have become more inclined to grant real estate loans and are attentive to customers in search of funding.
Banks are still looking to lend
even though credit has fallen sharply (the amount of mortgages granted in 2012 has fallen by 30% compared to the previous year). In addition to economic uncertainty, the drop in the number of new housing starts also explains this sharp drop (-19.6%, such is the decline in 2012 in the number of housing starts). However, the production of home loans remains more important in France than in the rest of Europe, according to the BO Bank. Because French banks always finance themselves in good conditions. “They have very broad access to monetary liquidity,” explains expert, director general of statistics at the BO Bank.
Indeed, banks are able to offer very competitive rates,
nd even to grant rate discounts in the range of – 0.10 to – 0.30% on very good records. Thus, for a loan over a period of 25 years, the average fixed rate excluding insurance applied is 3.40%; over a period of 15 years, the fixed rate is 2.80% and for a 10-year loan, the average fixed rate excluding insurance is 2.60%.
For the moment, an increase in mortgage rates is not envisaged if the OAT continues to stabilize, and does not increase dramatically over the next few weeks. However, the margin of progress is reduced, it seems complicated to go down to lower rates. One piece of advice, do not wait any longer to buy or redeem your home loan. If you run out of time, prefer to the banker the broker. Soliciting it will allow you to obtain negotiated rates (0.25% to 0.50% lower than a standard bank rate).