Home Loans: Will Rates Go Up After Cancellation?

After several months of falling interest rates on loans (3.73% on average in May versus 4.21%, the highest in December), will French borrowers face an increase? Since the announcement of the dissolution of the National Assembly, the 10-year OAT counters, the rate at which the French government borrows and at which banks set theirs has somewhat panicked. From 2.98% on June 5, it rose to 3.11% on Friday, June 14 (after peaking at 3.31% on Tuesday). “Rate tensions resurface after June 9 European elections”worried the president of the National Real Estate Federation (Fnaim), Loïc Cantin, during an economic update on Wednesday.

Real estate experts fear that the banks will eventually reflect this increase in their benchmarks, which will be updated monthly and communicated to brokers. “There’s no real reason to cry wolf at this point. It will settle down.”, wanted to assure Ludovic Huzieux, co-founder of Artemis Courtage, on BFM Business, Tuesday 11 June. However, the shock could be more pronounced in the case of an absolute majority of the RN or the New People’s Front in the parliamentary elections.

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