The second quarter of 2022 confirms the trend at the beginning of the year: rates continue to rise in April 2022. The increase remains moderate according to the best rates observed. On the other hand, the increase is more significant for the average price, which is still moving away from its lowest point.
Strong inflationary pressures, combined with rising current raw material and energy prices, are affecting interest rates hikes. The increase is almost unanimously over all periods.
In detail, according to the metrics provided by the banks, average prices are already experiencing an upward trend:
- Over the course of 7 years, the market price increased by 0.10 points to 0.95%;
- Over 10 years, the rate is now averaging 1.05% versus 1% in March.
- Over 15 years, the market price has increased by 10 cents and has reached 1.25%;
- Over the course of 20 years, the average rate increases by +0.5% and goes from 1.30 to 1.35%;
- Over the course of 25 years, the market price has risen by 15 cents, from 1.40% to 1.55%.
Thus, all periods recorded an increase of 5 to 15 cents to average rates. For the best rates, increases are less important. While they remain unchanged over 7, 15 and 20 years, there is an increase in minimum rates over other periods. This increase in rates comes in response to this Absorbable Treasury Bills (OAT), which recorded an increase of 70 centimeters.
This increase comes at a time when the Banque de France has just published the level of interest rates. This sets the maximum annual percentage rate that a bank can make. Although interest rates are high, Low depreciation threshold for loans over 20 years old. The maximum rate that risks causing a scissors effect and complicating access to credit is a little more for some borrower profiles. Especially since these restrictions come on top of the borrowing conditions imposed by the High Council for Financial Stability (HCSF). As a reminder, banks cannot grant mortgages that exceed the maximum debt ratio of 35% (including insurance) which limits their borrowing period to 25 years (27 under the terms). In this context, the risk of credit refusal may increase.
If conditions are less favorable than at the beginning of the year, The rates are still interesting because the rise is still under control.
In addition, lending institutions continue to actively seek clients. However, developments in financial markets and inflation remain uncertain and banks are more vigilant than ever when analyzing borrowers’ profiles. To increase your chances of getting financing on the best terms, it is essential that you are accompanied by a mortgage broker. This professional checks the feasibility of the borrower’s project. He then directs him to the institution most likely to offer him the best rate.