The end of the rise? The first scales provided by banking establishments in November seem to indicate a stabilization of property loan rates. But the best news lies in the return of the banks which decide to reopen the credit tap.
The return of the sun for real estate credit? One thing is sure, This start of November seems to mark a turning point. We are seeing some positives this month compared to recent months, confirms Mal Bernier, communications director and spokesperson for Meilleurtaux. The first rates received for November show a stabilization of rates. And the rare establishments which increase their prices do so in smaller proportions.
A slight drop in rates coming?
Thus, the Meilleurtaux broker reports average rates of 4.25% over 15 years, 4.35% over 20 years and 4.50% over 25 years, the longest duration. For its part, Empruntis only notes a change from 4.30% to 4.35% over the longest duration. However, average rates remain stable over 15 and 20 years. Finally, on its website, Emprunt Direct put in November on a slight drop in property loan rates in France.
Average rates in banks at the beginning of November
- On 15 years: 4.10% according to Empruntis, 4.25% according to Meilleurtaux, 3.93% for Le Partenaire, 3.95% at Emprunt Direct.
- On 20 years: 4.20% according to Empruntis, 4.35% according to Meilleurtaux, 4.07% for Le Partenaire, 4.10% at Emprunt Direct.
- On 25 years: 4.35% according to Empruntis, 4.50% according to Meilleurtaux, 4.20% for Le Partenaire, 4.30% at Emprunt Direct.
Average rates observed by brokerage networks, based on scales provided by banks. They do not take into account the cost of borrower insurance.
But the main good news is elsewhere: We see that the banks are returning to the market, and that the granting criteria are widening, there is a desire to lend. And this competition contributes to the stabilization of the market, develops Mal Bernier.
Some banks are returning to the real estate loan market, others offer subsidized loans for a certain category of borrower… We feel that all the players (bankers, brokers and borrowers) want to find solutions for everyone, assures Fabienne Laborde, director of operations at Le-Partenaire.fr.
The market horizon therefore seems to be brightening, in response to the rise in profitability of new production, writes Crdit Logement CSA in its October observatory. But the recovery will be slow and hesitant, as long as access to credit has not been reduced by the Bank of France. Moreover, the production of credits measured at the end of October on a rolling quarterly level fell by 30.6% year-on-year and the number of loans granted, by 28.2%.
The fact remains that the stabilization of rates and the reopening of the market will give breathing space to borrowers and all professionals in the sector, while the real estate loan market continues to fall. The production of new housing loans excluding renegotiation fell below the 10 billion euros mark in August, a first in more than 7 years.
A phenomenon which has repercussions on sales. In September, demand for old housing fell again, notes the LPI real estate price barometer published this Thursday, November 2. Usually, after a month of August which is the least dynamic of the year, sales recover at the start of the school year: on average and over a long period, activity increases by 20.5% over one month; and even in 2022, as the market plunged into recession, sales rose by 11.8%. This year, after showing exceptional resistance in August, purchases were reduced in September: – 21.4%, taking them to their lowest point in the last 20 years.
Self-employed: Tell us about your experience!
Are you self-employed, freelance or self-employed, and have you encountered difficulties obtaining a property loan from your bank? In this case, we are interested in your testimony! Has your loan request been refused by one or more establishments? Did the bank justify its refusal? If yes, what was the reason given by your banker? Does the latter seem justified to you?
Were you forced to modify your project (more contribution, longer borrowing period) to obtain your loan? Have you decided to reconsider your purchase (reduction in surface area, geographical distance, etc.) or to put it on hold?
Tell us about your experience in comments or by email to the following address: [email protected]. Your contribution will serve as a basis for writing an article on the conditions of access to credit for self-employed workers. Thank you for your participation!