3 figures on the upheavals caused by soaring rates in 2022

In his real estate loan observatory, the broker Meilleurtaux paints a portrait of a two-sided market: on the one hand buyers who are still motivated to embark on a real estate project, on the other hand rising rates but above all more blockages more problematic.

It’s no longer a surprise to anyone, mortgage rates have been rising since the beginning of 2022. Inflation, war in Ukraine… the news is not great. Despite everything, the desire to buy is still very present among French households. According to the Real Estate Credit Observatory published by the broker Meilleurtaux, in the first half of 2022, the number of files filed was good, down only 4.3% compared to the same months of 2021 which had been absolutely exceptional. Thereby, 393,254 applications have been filed since the beginning of the year for funding applications.

1.85% for a loan over 20 years, as in 2016

1.85% is the average rate offered to borrowers for a 20-year mortgage in July 2022. According to Meilleurtaux, no standard bank rate is below 1.70% for a mortgage over 20 years. And more than half of the bars are even above 1.90%! Rates that bring us back to 2016, when the average rate was 1.83%.

We have been accustomed for nearly 2 years to rates hovering around 1%, and even below, it is true that the rise in rates in a few months to reach approximately 2% today, somewhat upsets borrowers. But it must all the same be borne in mind that rates of 2% with regard to inflation over 5% is always a very comfortable situation, underlines Mal Bernier, director of communication at Meilleurtaux. For borrowers with a real estate project, it is therefore not too late.

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78euros per month more, compared to December 2021

To borrow 200,000 euros, you will need to count an additional 78 euros on your monthly payment, compared to a loan taken out in December 2021. Indeed, at that time, it was possible to borrow 1% over 20 years. For 200,000 euros, this represented a monthly payment of 920 euros excluding insurance.

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Today, with an average rate of 1.85% over 20 years, the monthly payment is 998 euros per month. In total, while the cost of credit was from 20,749 euros in December 2021, it is now 39,429 eurosa difference of 18,680 euros.

236,873 euros of average loan: 20,000 additional euros in 2022

According to data from Meilleurtaux, the average amount of a loan is 236,873 euros, over a period of approximately 21 years and 7 months. With the rise in interest rates, the loan is therefore 20,000 euros higher than last year. The average contribution in 2022 is 43,960 euros. He too is up about 10,000 euros compared to last year. Borrowers must make an extra effort to access the same surface hoped for a few months earlier. It’s not easy for everyone. Some first-time buyers are lucky enough to be helped by family, but this is far from being the case for all new borrowers. deciphers Mal Bernier.

For those who cannot increase their contribution, the question of the debt ratio arises. More and more files fail to stay below 35%, a condition set by the High Council for Financial Stability (HCSF) since January 2022. In January 2021, with the rates at the time, 71% of files were below the 35% mark of indebtedness. A year and a half later, in June 2022, the number of financeable files has dropped significantly. Only 59% of files are below the fateful 35%. Currently, we have more than 10% of the files which are between 35 and 40% of debt ratio and nearly 30% which are completely infinanables, notes Meilleurtaux.

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Composite of the borrower 2022

Who are the people accessing mortgage loans today? On average, the borrowing household is 37 years old and earns 4720euros net per month. In 2022, the share of first-time buyers is 61%.

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