Les taux continuent d'augmenter en ce mois de mai

Mortgage rates continue to rise in July 2022

At the start of the summer vacation of 2022, mortgage rates continued to rise. With the summer holiday period, which is traditionally conducive to an upward movement, banks generally slow the entry of new files to be processed. Moreover, the expected rise in wear rates breathes new life into the market.

Borrowing rates continue to rise

With their workforce leaving on summer vacation, the majority of banking institutions are recording an increase in real estate prices. However, the increase in rates is still constrained by the erosion rate, which remains low despite its reassessment.

Thus, in the July scales, average rates most often show a rise:

  • For 7 years, the market price has been stable at 1.15%;
  • Over 10 years, the average rate goes from 1.20% to 1.30%;
  • Over 15 years, the market price has risen 10 cents to settle at 1.50%;
  • Over the course of 20 years, the average market price has gone from 1.55% to 1.70%, an increase of 15 cents;
  • Over the course of 25 years, the average price has risen to 1.90%, an increase of 20 cents.

He notes that after 10 years, all tenors registered increases of 10 to 20 cents to average mortgage rates. For the best prices, they are mostly stable. The only movement recorded was for the best 7-year mortgage rate, which fell to 0.65%.

The rate of wear increases slightly

A slight reassessment of wear rates, which Loans increased from 2.40% to 2.57% for loans over 20 years, allows for a little more flexibility even if this increase remains insufficient for sector players. In fact, some banks have to reduce their profit margins to continue to distribute credit.

However, equivalent Treasuries, which are up more than 200 basis points since the start of the year, are just beginning to fall again. And if the curve, which just dropped below the 2% mark, continues to slide, the banks will find themselves in a better position in the coming weeks.

Banks are still open for financing

Despite the high interest rates, credit institutions remain prepared and ready to finance the real estate projects of the borrowers. In fact, Discounts are always possible for the best profiles. It is preferable to use enhanced files with sufficient savings and meet the rules of the High Council for Financial Stability (HCSF). In the face of the present conditions of access to credit, the role of the intermediary becomes more important. With his network and knowledge, this professional is responsible for improving the credit profile so that he can negotiate the best real estate price as well as the best loan terms.

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