Even if credit rates rise less quickly in April, some rates exceed 4% for borrowers with low contributions.
Access to the property market is always difficult. The extension of the loan period no longer prevents a rapid decline in loan production. This is indicated by the latest Observatory Credit Housing / CSA.
A slowing rise in interest rates
The rise in credit rates slowed in April by +11 basis points, to an average rate of 3.15% (3.19% for new and existing home ownership), compared to 3.04% in March.
“Since January, increases in the average credit rate have been 20 basis points per month on average. The revaluation of the wear and tear rate that took place from January and then its monthly payment allowed a faster adjustment of the loan rate”, the Observatory Credit Housing/CSA emphasizes.
But rates of 4% over 25 years were sometimes reached
For loans over 25 years, rates exceeded 3.50% in April for half of borrowers, and could even go above 4% for a small proportion of borrowers with the smallest personal contribution.
Still no margin for the banks
Credit institutions’ margins have not recovered, according to the Observatory Credit Housing / CSA. The increase in the main refinancing rate of the European Central Bank (ECB) to 3.50% from March 22 has affected credit production, as it increases the cost at which banks buy the money they lend, despite the monthly payment of the wear rate. The latest increase from the ECB (+0.25% or 3.75%), which has been in effect since May 10, is less significant than the last six increases.
Long loan terms are stabilized
In April, the average maturity of loans was 250 months (20 years and 10 months). “A level rarely observed in the past, although the extension now marks time, the Observatory Credit Housing / CSA indicates. For more than a year, this trend in terms has no longer prevented a rapid decline in the production of loans. »
A number of granted loans, which fell by 40.1 per cent.
Loan production continued to decline at the end of April, with a 39.7% decrease in the February 2022-April 2023 period compared to February 2021-April 2022 and a 40.1% decrease in the number of loans granted.
“This fall is unprecedented in the sense that it does not spare any of the residential real estate sectors,” notes the Observatory.