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The news is not better for borrowers in the mortgage category. It is already difficult to get a mortgage loan, and the month of November does not report any progress. In continuation of the previous months, the interest rate increase continues over all loan periods. The rates indicate the rate of wear.
Interest rates on home loans continue to rise. The cost of money is currently following the growth trend, so the increase in rates is not a surprise. To set credit rates, the banks use the 10-year OAT as a benchmark. This is a bond debt paper that the French government borrows from. In October, this corresponding government bond rose from 2.4% to 3.02%. The rise in credit interest rates is therefore a logical consequence of this fluctuation, but the banks are limited by the usury rate, which is the maximum legal loan rate that they may not exceed.
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The average interest rate at the beginning of November
Olivier Lendrevie, chairman of a brokerage network, clarifies it this increase in rates could still continue during the coming months. In fact, the report mentions a average increase of 0.50% every three months. The rates will continue to change until they reach a level consistent with the refinancing costs for banks. Given the state of the financial markets, this landing point is estimated at 3.50%. A unanimous increase in mortgage interest rates was observed in all financial institutions. The data collected by the agencies broker confirms the same fact: all rates have reached and exceeded the 2% mark. For loans committed over 15 years, our comparator found one average rate of 2.16%. It is currently at 2.05% and 2.21% according to other brokers.
Prices are approximate wear rates
At the level of the mortgage loan over 20 years, the rate is found at 2.30% at the beginning of November. For the other comparators, it is 2.20% and 2.33%. As for the 25-year credit current average rate is 2.49% according to our information. According to other brokerage networks, it is 2.35% and 2.49%. The attrition rate is set to 3.05% until the end of the year for loans over 20 years. As a result, we can expect a continued rise in mortgage interest rates. The overall average rate should be around 2.50% around December 31st. However, the increase is limited by the rate of wear. As a reminder, the wear rate includes interest.