bad news confirmed for your credit

The growth of real estate rates is confirmed in mid-summer. Given the scale disclosed by brokers, the average rate set by banks on a 20-year loan should indeed cross the 4% mark in September.

Months follow one another and look the same for real estate betting. Nothing seems to be able to stop their growth. Average rates are 3.75% for 15 years, 3.90% for 20 years and 4.20% for 25 years. frequently offered rates over 4% for 20 years or moreexplained broker Vousfinancer in a press release published last week.

The average mortgage rate for all terms combined was 3.61% in July against 3.45% in June, according to data released Thursday by Observatory Credit Housing/CSA.

The average rate for 20 years, which borders on 4%

And according to the latest data from Meilleurtaux, updated on August 1, rates continue to rise by 3.87% over 20 years from 3.80% a month earlier. Only the best profiles can still hope to get a rate just below 3.50%.

Average rates in banks at the beginning of August

    • On 15 years: 3.59% according to Cafpi; 3.80% according to Meyerto; 3.91% Pretto.
    • On 20 years: 3.72% according to Cafpi; 3.87% according to Meyerto; 4.07% Pretto.
    • On 25 years: 3.86% according to Cafpi; 4.01% according to Mejorto; 4.20% Pretto.

    Average rates marked by broker networks based on scales provided by banks. They do not take into account the cost of the borrower’s insurance.

Such an increase in rates in August was expected. Indeed, the new usury rate, the maximum aggregate rate (including insurance and bank fees) above which a bank cannot lend, has increased even further. In the period from July to August, it increased from 5.09% to 5.33% for loans issued for a period of at least 20 years. A level that has not been seen for 10 years when lending rates were trading around 4%.

Moreover, the European Central Bank (ECB) has continued to raise rates to curb inflation, which increases the cost of the resource for banks to lend to their customers. As long as the ECB continues to raise its key rates, it will be difficult for banks to make the loans they make profitable without in turn raising lending rates in the crowd… but for how long?, analyzes Sandrine Allonnier, spokeswoman for Vousfinancer.

5% rates at the beginning of 2024?

As a result, interest rates are expected to rise by 4%. Broker Vousfinancer supports his scenario A 4.5% rate by the end of the year and possibly even a reappearance of the 5% rate in early 2024..

Everything will depend on the impact on the economy of these policies, which have already reduced the demand for credit to historically low levels. This should continue in the coming weeks, given the fact that the creditworthiness of borrowers is declining month after month, which, without significant price cuts, is largely making it impossible to buy for the time being, said Julie Bacher, managing director of Vousfinancer. .

For those who have the funds to buy real estate, is now the right time to start? Yes, says Mal Bernier, spokesman for Meilleurtaux, because there will always be time to revise your lending rate in the future if the latter falls again.

At 4% in September, are you still interested in buying?

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