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The number of real estate loans granted by French banks decreased significantly in the first half of 2022. The reason is the rise in interest rates, but it is far from being the only factor in this decline. The real estate market has also undergone changes in recent months according to professionals. These changes favor wealthy clients.
The mortgage market is gradually closing to lower income families as the rate increases. However, this increase is expected to continue and banks may exceed 2% by the end of the year. Because of this relentless increase, the number of credits offered has decreased. This decrease also has other explanations according to specialists. The real estate market could have developed differently in recent months, and the offers are aimed more at wealthy clients. Excluding low-income families from the real estate market reduces loan production. But the Bank of France refutes this idea.
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Mortgage grant terms have changed
The list of candidates for purchase consists of high-income families, according to analysts. The Crédit Logement / CSA observatory is part of 4.7% increase in average income of buyers From 2021 to 2022. As the area of u200bu200bpurchased homes increased, Attractive Increase the amount of loans which increased by 10%. The price of goods for sale is also increasing.
For professionals, real estate market conditions give an advantage to wealthy clients. No less so with lending institutions. The amount of personal contribution required from borrowers increased by 17% in one year. presence of wear rate In France, the pressure on the banks increases. Brokers consider it too low in a context where it Mortgage rate Never stop developing.
But the Bank of France does not share this view. So she argues about it Mortgage loans granted increased by 6.8% in May 2022. The organization is talking about a total of 27 billion euros released, a figure that would not have been achieved five years ago. The reported data contrasts with that of the brokers, and analysts believe they know the origin of this difference.
According to her, the statistics of the Bank of France reflect the money that was released three or four months ago. . effects wear rate However, it will only be felt as of September 2022. In addition, it is Review every three months on the basis of the rates applied during the previous quarter. In short, brokers and the Bank of France Market analysis in different contexts.
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15% decrease from 2022
In the second quarter of 2022, the credit scoring observatory / CSA noted At a rate of 1.4% without borrower insurance. there was 1.12% in the previous quarter. The increase affects all profiles and all durations. The number of loans granted decreased by 12.5% in one year, from April to June 2022. The number of loan applications decreased by 9% During this same period.
From a volume perspective, a decline of 7.3% was recorded in the first half of 2022. The decline was around 5.6% for the first six months of the year in terms of value. increase inpersonal contribution The requirement does not raise the entire average loan size. This decrease is accompanied by A decrease in the solvency index According to Crédit Logement data.
Over the course of 2022, the observatory plans Mortgage loan production decreased by 15%. However, the interest rate is still very low due to the pace of inflation. Even the banks will have negative results now. However, the prudential and solutions watchdog indicates that it has taken the necessary measures to reduce the risks. Loans are now given on the basis of the financial ability of the borrower, Refers to the organization. Include the majority of accepted orders as well fixed rates. The bond and insurance provide additional protection.