In August 2022, mortgage rates continued their upward movement. A phenomenon that exacerbated with the summer vacation period, during which banks slowed down processing loan application files pending the return of their employees. However, the rates are still favorable for borrowing candidates.
It should be noted that the rate increase is still limited by the wear rate which remains at a very low value.
Thus, average rates show bullish levels in August:
- Over the course of 7 years, the market price increased by 0.35 points to 1.50%;
- Over 10 years, the average rate increases from 1.30% to 1.60%;
- Over 15 years, the market price has increased by 20 cents to 1.70%;
- Over 20 years, the average market price increases from 1.70% to 1.85%;
- Over a 25-year period, the average rate is up to a nominal bar of 2%.
All tenors posted increases of 10 to 35 cents to average mortgage rates. The observation is identical to the best rates because they all increase. For example, the best 20-year mortgage rate is 1.40% (+30 cents).
The inflationary shock is partly responsible for the rate hike, as is the increase in OATs (Assimilables du Trésor) since the beginning of the year, as we explained last month. But the recent drop in 10-year bond prices to 1.35% after rate of 2.35% However, in June 2022, it will breathe new life into the credit market.
Especially since re-evaluating interest rates allows banks to increase the room for maneuvering. In addition, it is also worth noting that despite the bullish context, some organizations continue to offer premium rates to attract the best profiles.
The rise in interest rates that began in January 2022 is supposed to continue in the following months, according to recent statements by the Governor of the Bank of France. In fact, Rates should be around 3% by the end of the year.
However, in the current context, organizations agree to reduce their margins to attract the best files.
Thus, improving his loan application file is essential if the borrower wants to increase his chances of obtaining financing under the best conditions. It is recommended Hire a Mortgage Broker. This professional, thanks to his network and deep knowledge of credit, will be able to direct the borrower to the institution that is most able to finance him at the best rate. Feel free to apply for a mortgage with Ace Credit.