Mortgage credit: holidays and price hikes, bad times for borrowers

Unsurprisingly, mortgage rates continued to rise at the beginning of August, despite the decline in the 10-year OAT, one of the indicators that brought rain and brightness to mortgage lending. For borrowers, the often inauspicious holiday period is tightening to move files forward.

We know that summer, which chimes in with the holidays for the majority of French, is not an ideal period to take out mortgage loans. We’ll have a few bars, and people are on vacation, explains Sandrine Allonier, a spokeswoman for Vousfinancer. Instead, in the second half of July, we received calls from banks showing us the profiles of the borrowers they were looking for. The cards will be modified rather in September.

The best profiles are no longer untouched

If banks, which have to work with fewer employees, tend to tighten the screws a bit in normal times, current conditions are not helping. It is recognized that the 10-year OAT – an indicator of French government borrowing rates, a benchmark for developments in the credit market in France – It fell to 1.61% at the end of July, after exceeding 2.35%. In mid-June, mortgage rates continued to rise. Thus, while it was possible to borrow 1.57% over 20 years in July, borrowers who still have access to it are now being offered, at best, 1.76% at the beginning of the month, August.

And the Very good features not spared. According to Cafpi, the rates offered to premium customers are now 1.30% over 15 years versus 0.90% last month (+40 cents), 1.45% over 20 years vs. 1.10% in July (+35 cents) and 1.55% over 25 years versus 1.30% over 25 years (+25 cents).

Average rates in banks at the beginning of August

    • on me 15 years: 1.48% on average according to “Kafbi”; 1.64% according to Brito; 1.69% for Meilleurtaux.
    • on me 20 years: 1.58% according to Kavpi; 1.76% according to Brito; 1.85% for Meilleurtaux.
    • on me 25 years: 1.75% on average according to Cafpi; 1.88% according to Brito; 2% for Meilleurtaux.

    Average rates recorded by brokerage networks based on metrics provided by banks. It does not take into account the cost of insurance for the borrower.

In contrast to the more fragile profiles, the high-potential profiles can still hope to get out of the game, as explained in a press release by Pierre Chabon, head of broker Brito: At the end of July it is very difficult to negotiate prices. High-potential features Allowing the bank to visualize a full banking relationship has the privilege … a fortiori, if it borrows modest amounts (300,000 to 400,000 euros max) that weigh less on banks’ balance sheets.

For less attractive files, it will still be necessary to wait, in the hope that the banks will re-launch the foray of customers at the beginning of the school year: we recommend to borrowers Take advantage of the month of August to work on and consolidate their file With the aim of taking advantage in September of opportunities that are sure to appear in light of the acquisition targets set by some banks, Pierre Chabon emphasizes once again.

Your projects at the best price Thanks Our comparison of consumer loans

Gradual freeze of real estate loans

All credit indicators are red, alert Olivier Lindrey, head of broker Cafpi. Rates continue to rise rapidly and The amount of loans granted decreased (-12.5% ​​in the second quarter, year-over-year), according to the latest numbers from Credit Logement. On the ground, we’re seeing a gradual freeze in mortgages.

Unfortunately, even at the beginning of the school year, the usury rate (the maximum rate at which a bank is allowed to lend) must continue to deter borrowers. Olivier Lindrevi reports that one in two files has struggled since the beginning of July due to the attrition rate, set at 2.57% for loans of 20 years and over (2.60% for shorter periods).

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