While some thought to see a rise in rates in 2018, the opposite is happening.
Analyzes show that mortgage rates stagnate , or even better, decline !
Falling mortgage rates down
Several reasons explain this rate decrease . First, the key rates of the central bank, and in particular the 10-year OAT, reference rate of the cost of money for banks, decline. This implies rates that also fall for the end consumer, namely the borrower.
Another interesting point, the banks compete fiercely in the middle of the year 2018. Indeed, the objectives are far from being fulfilled and the files are scarce than in previous years, due in particular to the decline of the requests for Real estate loan buyback , the vast majority of French have reviewed their loan agreements with their banks, or even made a credit redemption from a new bank.
Longer and longer durations
Sign that banks need to enter new credit files, they grant more and more long terms on loans. It is now possible to borrow over 25 years in almost all banks, and openings appear for loans of a longer duration, 30 or even 35 years!
In general, the average duration of home loans in France is increasing. Since 2017, this average duration has increased by 7 months according to the Crédit Logement observatory.
One consequence: Stop the transferability of loans
The continuity of low interest rates and the prospect of an inevitable rise, in the more or less near future, are pushing banks to protect themselves. Some have already made the decision to stop the possibility of transferring a loan.
It was indeed possible in some banks to transfer a loan when the borrower resold his property to buy a new one. This possibility tends to disappear.
To make a complete point on your personal situation with a view to a real estate purchase, do not hesitate to call on your local broker and ask for an appointment of study of budget .