Better measure: Mortgage rate declines continued in June - Le Desk

Better measure: Mortgage rate declines continued in June – Le Desk

While summer is traditionally an unfavorable period for borrowers, nothing seems to be stopping the decline in mortgage rates. Fears of a rate hike appear to have been dismissed for the time being.

This downward movement in prices should not lose steam. In fact, rates have not stopped declining since the last quarter of 2021 and recent metrics do not indicate a change in trend, as noted in its latest metric.

However, it must be said that banks are especially vigilant regarding borrowers and acquired assets. With the rising cost of living, banks are now likely to take into account the impact of the current situation on buyers’ budgets. This is why we are still noticing the decline in LTV, with a variance of 2.00% from last month, and 3.70% from the previous month. Thus, the equity contribution of the borrowers by the shareholders is on average more than 25% of the purchase price according to the data provided by

At a time when lending terms are shrinking and the expected inflow increases, fixed mortgage rates are maintaining their stability, with the average for this month at 4.10%, similar to April. However, it is worth noting that based on 458 pre-agreements in principle generated by the online comparison simulator, with regard to death and disability insurance, the rates show a significant decrease of 0.15%. In other words, Moroccans can continue to borrow under very favorable conditions, benefiting from an average annual interest rate of less than 4.9%, but they must show an impeccable profile and be able to justify the contribution. Ultimately, the buyers most affected will be first-time buyers – they’ll see their budget go down.

Along with these vigils, stresses that it is also important to note that the real estate market remains resilient, and the low rates that encourage the granting of mortgages have a good chance of sustaining in the second half of 2022.

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