Real estate credit: real estate prices in the region will rise in July 2022

Borrowing rates recorded on 07/18/2022

Like every month, banks move their balance sheets. These allow you to get a comprehensive view of the evolution of mortgage rates. Valuable data that is then presented in the Borrowing Scale. Thanks to the banking balances, it is thus possible to discover the average and lowest prices currently applied according to the terms, region by region.

Unanimous increase in average rates

Reading the bank tables, it turns out that all average rates (over 7 regions and 5 periods) are increasing. Increments vary and can be up to 40 basis points. Here is the evolution of average rates compared to last month:

Evolution of average prices by region in July 2022

durations	north	Ile de France	east	Ron Alp	The Mediterranean Sea	Southwest	the West
7 years	1.45% (+0.20%)	1.55% (+0.25%)	1.50% (+0.25%)	1.50% (+0.30%)	1.35% (+ 0.15%)	1.30% (+0.10%)	1.55% (+0.35%)
10 years	1.50% (+0.25%)	1.60% (+0.25%)	1.75% (+0.40%)	1.65% (+0.35%)	1.40% (+0.20%)	1.40% (+0.20%)	1.65% (+0.35%)
15 years	1.45% (+0.25%)	1.85% (+0.35%)	1.90% (+0.35%)	1.80% (+0.40%)	1.70% (+0.30%)	1.60% (+0.20%)	1.80% (+0.35%)
20 years	1.90% (+0.30%)	2% (+0.30%)	2.10% (+0.40%)	1.90% (+0.35%)	1.90% (+0.30%)	1.75% (+0.20%)	1.95% (+0.35%)
25 years	2.15% (+0.25%)	2.10% (+0.25%)	2.15% (+0.30%)	2.05% (+0.30%)	2% (+0.20%)	1.90% (+0.10%)	2% (+0.20%)

Borrowing rates recorded on 7/18/2022 compared to rates of 06/15/2022

The increase is very present and affects all average rates without exception. Note, however, that only The regions of Ile-de-France and the East show a rate above 2%.

As for the minimum prices reserved for the best files, they all increase except for In the North, where rates in 10, 15 and 20 years remain similar to last month. So this represents 3 rates out of 35 (5 periods, 7 regions) or 8%.

This increase, which affects almost all regions and durations combined, is explained by the traditional rise in bank-managed property prices to limit the flow of files during the summer. In fact, to avoid longer processing times, banks are tightening their terms during the summer holidays.

Tighter access to credit

The continuous rise in interest rates since the beginning of 2022 has made it more difficult to obtain mortgage loans. In addition, Bercy finally abandoned the project, which had to revise the method of calculating the wear rate so that it was more in line with the current realities of the market.

Thus, in 1^Verse July 2022, Abrasion rates have been reassessed at 2.57%. For loans of 20 years or more. An increase considered by banking institutions to be insufficient.

In fact, the cost of money is still too high for banks. If some people do not hesitate to do so Cut corners to attract the best customersOthers decide that Temporarily exit the credit market.

The importance of competition

In this context, it is absolutely necessary to rally around the banks. And since this task can take a very long time, it is recommended to do it Hire a Mortgage Broker. This expert is the guarantor of a successful real estate project.

In addition, some banks continue to give discounts to file. So to make sure you get the best conditions, it is recommended that you prepare your file well:

• Make a personal contribution of at least 10% to pay at least documentation and warranty fees;
• Demonstrate proper revenue management By offering healthy accounts (avoiding overdrafts, gambling, etc.);
• Proof of stable income. Banks value profiles of permanent contracts or civil servants. It is also possible to submit 3 last budgets in the case where the borrower is independent.

Once the borrower’s profile has been improved, the finance specialist will be able to direct the borrower to the institution most able to finance it under the best conditions. He negotiates in his favor the best price according to his profile and project.