The increase in property prices continues in this return to September 2022. On the other hand, the increase remains fairly subdued compared to the beginning of August. In fact, if debtor rates continue their upward movement started since the beginning of the year, some banks seem to adapt and show new solutions. A favorable context for project managers with sufficient borrowing capacity.
No landing in mortgage interest rates this autumn
Rates are rising again for the eighth month in a row, but this increase remains under control, especially due to the rate of attrition.
Here is a detailed update on current conditions and average price developments in September:
- over 7 years, the market rate increases by 0.05 points to reach 1.55%;
- over 10 years the average rate stagnates at 1.60%;
- over 15 years, the market rate goes from 1.70% to 1.75%;
- over 20 years, the average market rate remains fixed at 1.85%;
- over 25 years, the market rate exceeds the symbolic bar of 2% to stand at 2.05%.
On the side of the average rates observed in the market, the upward effect is very small, even painless, with an increase of only 0.05 points over 7, 15 and 25 years. Regarding the development of the average rate over 10 and 20 years, it remains unchanged. On the side of the best prices, on the other hand, all durations registered increases of 8 to 19 cents. The best mortgage rate over 20 years thus increased by 0.08 points to 1.48%.
The recent decline in 10-year government bonds (0AT) has allowed banks to refinance themselves. A fall in the price of money which has restored some flexibility to the credit market, as we explained last month. The trend towards a pause in rate hikes should continue at least until next month. Indeed, the award conditions may change again or even become more flexible with the next revaluation of attrition rates expected in October.
In addition, it is clear that many banks remain open to financing and are ready to offer favorable mortgage interest rates to borrowers. Some banks are even showing new solutions to win customers with the return of the limited variable rate. The revival of interest rate caps with variable interest rates may actually make it possible to circumvent the restriction on usury rates, since the initial interest rate is lower than the fixed interest rates observed in the market.
Access to credit with better terms
At the start of this September, the inflation peak and the increase in property prices since January 2022 are weighing on the purchasing power of the French on real estate. In this context, loan candidates could be tempted to postpone their purchase plans. However, it should be noted that credit interest rates remain favorable. The banks seem to show ambitions of conquest with fairly stable scales and new financing strategies with the return of adjustable interest rates.
In a market that is becoming complex, access to credit at the best interest rate is becoming a matter for experts. The measures imposed by the High Council for Financial Stability (HCSF) continue to restrict institutions, which must be vigilant when studying borrower files. Therefore, it is recommended more than ever that applicants for a loan seek out a mortgage broker. His mission? Get the best financing conditions from the consolidation of the loan application file to the release of funds.