After many months of turning a deaf ear, the Banque de France decided on Wednesday, January 11, to return to the method of calculating the wear rate. A temporary change, which should however be beneficial for borrowers.
Is the sky about to clear on the mortgage front? While the average rate for a loan over 20 years continues to increase (2.52% in January) buoyed by the rate of 10-year OATs (the French government borrowing rate indicator, which serves as a benchmark for changes in the credit market in France, Ed), the future becomes clear.
According to consistent information from Capital and thingsthe usury rate, this all-inclusive rate above which a banking establishment cannot lend, will now be updated monthly from March 1st. This decision comes after a meeting between representatives of brokers, the Minister of Economy and Finance Bruno Le Maire, and Franois Villeroy de Galhau, Governor of the Banque de France.
A method of calculation that sticks more closely to reality
Brokers do not fail to welcome this decision, like Ccile Roquelaure, spokesperson for the broker Empruntis. Because the current blockages on the mortgage came above all from the rate of wear. Supposed to protect borrowers, it includes loan insurance, guarantees and administration fees. Fix 3.57% for loans of 20 years and over since January 1 (3.53% for loans between 10 and 20 years), the rate of wear was so far accused of blocking many borrowers, in particular because of too large a time lag in the method of calculation.
Indeed, for its calculation, the Banque de France normally bases itself on the average of the credit rates (taking the APR, the all-inclusive rate of the credit) of the last 3 months and plus a third to set the wear rate for the following quarter. The problem is that the rates taken by the Banque de France are those of the credits released by the banks at a given time, but negotiated months earlier by the borrowers.
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For the wear rate in January, the Banque de France used an APR of 2.68%, which means that the nominal credit rate is around 1.85%. These are credit rates from August 2022. In September we were already 2% on averageexplained Mal Bernier, spokesman for the broker Meilleurtaux, for MoneyVox, before illustrating: Which means that the Banque de France was based on loans released in banks in October or November, but whose rates have t negotiated in August.
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