The trend towards immobility tends to come to the fore in mortgage activity during the summer period according to the latest economic report from broker Emprunt Direct.
Raising interest rates from 10 to 20 basis points in early July
Networks issued by Emprunt-direct.com partner financial institutions during the first days of the month are much fewer than usual. Some banks have discontinued the prescription, and the rates tables they can offer are sometimes higher than those of the usury rate. The few networks that are connected show an upward movement that remains more pronounced in short periods. The prices therefore rise by 10 to 20 basis points.
Some institutions have temporarily moved away from the market, in a context where the increase in the applicable usury rate in the third quarter was only 17 basis points for loans over 10 years. Some banks pass, of course, the price increases observed in the bond markets, but they cannot apply these increases to the extent of those observed since the beginning of the year in the price markets. In fact, the effect of a move of more than 200 basis points, similar to what has been observed in 10 years of opioid agonist treatment since the end of December 2021, is likely to significantly reduce the financial capacity of the remaining eligible households.
Mortgage loan production affected by rising interest rates and eroding demand
The upward trend in interest rates and the very limited rise in the usury rate have a negative impact on the mortgage market. The demand for housing loans is eroding due to the successive adjustments implemented by banking institutions in recent months. A blockage is observed in terms of credit supply, with some banks refusing any study of files, while other institutions are a little more active in terms of issuing credits giving them in shuffles and shuffles. Some banks are also more concerned about the quality of the coil, and are particularly concerned about the impact of various factors, such as high energy costs and the rest to live after the project. The rejection of any modification to the erosion rate calculation by the authorities will imply de factoAlban Lacondemene, founding president of Emprunt Direct, notes that under current market conditions, there has been a sharp decline in mortgage production throughout the quarter.