Real estate: further decline in loan rates and costs

Do whatever you want in May. If that adage didn’t hold true this year weather-wise, it was a good day for mortgage borrowers. Between December 2023 and May 2024, the number of loans granted increased by 86%, the latest Housing Credit Observatory reveals. ” The banking offer is again more dynamic “, he notes. Banks again decided to win customers and eased their credit terms and lowered their rates. In May, the average rate of loans in all durations together fell back to value 3.73%. Enough to color the market a bit.

On average just over 20 years of lending

After peaking at 4.2% last December, the average rate has lost nearly 50 basis points in just six months! In 15 years, it drops to an average of 3.62%. Of course, it is always possible to get less if the borrower has a good track record: stable employment, contributions, savings and a debt-to-equity ratio below 35%. For example, with the broker Pretto, those who earn between 40,000 and 80,000 euros per year can get 3.61% for 15 years.

More good news: the observatory has seen a drop in the cost of credits, which is now equivalent to 4 years of salary (compared to 4.6 years at the end of 2022). Because along with the drop in rates, the average length of loans continues to increase, to a total of 248 months (20.6 years). ” This decline in relative costs corresponds to a 15% decline in property prices from December 2022. ยป, the observatory calculates.

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