As summer approaches, nothing seems to be stopping the rise in mortgage rates. Values continue to advance in June 2022 to move away significantly from their lowest level.
Prices change with rising temperatures. In detail, the increase in interest rates was observed over almost all periods.
Thus, according to the figures provided by the banks, the average rates are changing:
- Over 7 years, the market price has risen by 5 cents to 1.15%;
- During 10 and 15 years, average rates stagnated at 1.20% and 1.40%, respectively;
- Over 20 years, the average rate increases by +0.5% and goes from 1.50 to 1.55%;
- Over the course of 25 years, the market price has increased by 5 cents, from 1.65 to 1.70%.
Thus, an increase of 5 cents permeates the average term rates over 7, 20 and 25 years.
This upward movement in credit rates should not lose steam. In fact, rates have not stopped increasing since January and the last metrics combined Increase in key rates (OAT) Do not suggest a change of direction. The latter, which acts as a benchmark for banks, has also risen from a near-negative level in January to nearly 1.72% currently. In this context, banks can only pass on these increases to loan rates to individuals. Especially since usury rates, which are still as low as a quarter, have continued to fall while real estate prices are on the rise.
As a reminder, the usury threshold sets the maximum annual percentage beyond which a bank cannot lend. Usury rates should rise this summer, calculated on the property prices of banks. However, this will coincide with the bank holiday period Traditionally they increase their rates To avoid extremely long processing times.
With prices rising, grant terms are getting stricter and it’s more recommended than ever to prepare your project before starting. So using a broker can be beneficial. With his deep knowledge of credit, his network of banking partners and his sense of negotiation, the broker takes care of finding the most interesting offer and negotiating the best terms. he is The guarantor of a successful real estate project In this period of high borrowing rates.