A wear and tear rate still on the rise, good or bad news for mortgages?

The new usury rate, the maximum all-inclusive rate above which a bank cannot lend, was published on Sunday May 28 in the Official Journal. For the longest loans (20 years and over), it is now fixed at 4.68% until June 30. But, like every month since February, this increase should be accompanied by a rise in mortgage rates.

Towards 4% mortgage rates this summer? One thing is certain: the new increase in the wear rate, published on May 28 in the Official newspaperwill allow banks to continue to increase their bar.

As a reminder, the usury rate is the maximum all-inclusive rate (insurance and bank charges included) above which a bank cannot lend. Accused of blocking real estate credit at the end of 2022, it is reviewed every month from February 1 until July 1.

4.68% for the longest loans

For the fifth time in as many months, the wear rate is therefore on the rise. From June 1 to 30, it is thus set at 3.99% for loans less than 10 years old, 4.45% for loans with a term of 10 to 20 years and 4.68% for the longest loans (20 to 25 years).

Wear rate for real estate loans in June 2023

CategoriesAverage effective rate
practiced during
previous three months
June 1, 2023
Wear rate
applicable to
June 1, 2023
Real estate loans
Fixed rate mortgage loans2.99%3.99%
Fixed rate mortgage loans ≥ 10 years and3.34%4.45%
Fixed rate mortgage loans ≥ 20 years3.51%4.68%
Variable rate home loans3.35%4.47%
Bridging Loans3.50%4.67%

This category also includes credit resulting from a consolidation comprising one or more home loans whose share exceeds 60% of the total amount of the consolidation operation. Source: Legifrance.

Opposite, mortgage rates should also continue to increase. With this rapid rise in usury rates and government borrowing rates still close to 3%, we are maintaining a 4% rate scenario over 25 years in the summer, or even over 20 years, a level not seen since 2012. , analyzed Sandrine Allonier, spokesperson for Vousfinancer, a few weeks ago.

Today, banks that lend 3.5% claim loss, assures Mal Bernier, spokesperson for the broker Meilleurtaux. Month after month, credit rates go up by around 0.20%. However, this month, the wear rate has only increased by 0.16%, which seems too low to me. One would have thought that the wear rate would be a little higher, to have loan rates around 4%.

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