The rise in mortgage rates has been going on since the beginning of 2022 and even tending to accelerate in recent weeks. According to our experts, the upward movement should continue to grow.
Credit rates continue to rise
While mortgage rates remain at their lowest levels at less than 1% in 2021, the trend has gradually reversed in recent months. From 1% in January 2022, average prices over 20 years have risen to 1.70% in July of this year. The bearish movement has ended well and indeed and according to the professionals in this sector, the rally should continue in a sustainable manner. Cecile Rockellor, director of studies at Empruntis, thinks so too Average rates over 20 years will reach 2% before the end of 2022.
The goal is to reduce inflation
The Governor of the Bank of France, Francois Villeroy de Gallo, who also serves as a member of the European Central Bank (ECB) Governing Council, confirmed that interest rates will continue to rise. After rising 0.25 points in July, rates should rise again in September. because of ? The European Central Bank wants to curb inflation That affected consumption since the beginning of the year. An increase in prices makes it possible to slow down demand, which in turn leads to lower prices.
Banks are still open for financing
With prices accelerating since the start of 2022, is it the right time to make a real estate project a reality? According to Cecile Rockellor, Negotiation is still possible, as banks are always looking for new customers. Also, even if institutions remain constrained by the usury rate and cannot really raise volume, some banks are willing to cut their margins to attract the best profiles (who have a contribution level of at least 10% of operation).
“Good first-time buyers (i.e. cost savings, little residual savings and counterparties) prefer these market conditions because banks are willing to make efforts to entice them, File cuts are always possible. Furthermore, a regional bank chose the single metric (2.10% regardless of duration and income)”, explains Cecile Rockellor.
However, you should know that during the summer period, your file processing times can be longer.
In this context, it is more necessary than ever to turn to a credit professional to improve your loan application file. With its experience and network, a broker is a valuable asset to quickly negotiate a financing solution at the best rate.
Benefit from our expertise at the best price!
starting from 1.15% over 15 years old(1)