Credits, why are the rates so low?

It is historic, mortgage rates have reached a new record. “In May 2013, the rates of loans in the competitive sector (excluding insurance and cost of collateral) stood at 2.97% on average,” announced in early June the Housing Credit Observatory / CSA, stating that “never by in the past, mortgage rates have not come down as low. ”To the point of having fallen well below the historically low precedent of November 2010, when they had dropped to 3.25%.

So how do you explain this level? Will it revive the somewhat slower real estate market? And is this trend sustainable?


Why such a low rate?

credit rate

First of all, it should be considered that the general economic context is rather gloomy and on the model of the Funding Square Bank, all interest rates are largely down. The key rate of the Funding Square Bank thus fell to 0.50% on May 2, again unheard of, and the assimilable Treasury bonds (OAT) are on the same trend, the 10-year OAT falling below 1, 70% in April.

From a much more pragmatic point of view, the ever-competing banking establishments followed suit and made the decision to lower their interest rates. Because as you surely know, bank loans – and more precisely mortgage loans – are a means of lasting loyalty of new customers and thus consolidate the vitality of banks. All the more easily since the current level of the key rate of the Funding Square Bank, which determines the cost of their refinancing on the main credit operations, and that of the 10-year OAT, their benchmark for establishing the level of their loans. at a fixed rate, place them in a very favorable position.


A trend not ready to change

credit rate

If we are to believe economists and professionals in the sector, rates should not go up over the medium term, always in the light of an economic and financial context that looks grim.

The good news for consumers is that this situation is particularly favorable to them and that, in fact, future buyers have even more of a hand in negotiating advantageous credit rates. This context also benefits borrowers who took out a loan a few years ago and who no longer hesitate to renegotiate better rates.


And for the prices?

credit rate

However, if it is estimated that a couple with a solid record can currently obtain a loan over fifteen years with a rate that can “go down” up to 2.6%, it must be taken into account that the real estate market, even if the prices are falling in certain regions, remain stable overall and that no spectacular price drop is to be expected. It should also be noted that certain facilities, such as the zero-rate loan, which is now directed exclusively to new buildings, have been largely planed.

And you, have you noticed a notable difference in mortgage loan rates? Are you one of the future buyers who are still waiting to buy? Come and discuss it, the blog is there for that!