Mortgage rates never stop climbing. Here’s what you can get for a loan over 15, 20 or 25 years.
Real estate rates continue to climb. But depending on the duration of your credit and depending on your resources, the conditions of a loan can be very different. According to the latest CSA/Crdit Logement observatory published yesterday Tuesday, the average rates charged in December range from 1.78% over 15 years 2.66%. All durations combined, the average rate stands out 2.34% and it reaches even 2.54% mid-January according to the provisional data of this survey. The average rate is 2.14% for a 15-year loan, 2.30% over 20 years and 2.42% over 25 years.
| Duration of the loan | Average rate |
|---|---|
| ready on 15 years old | 2.14% |
| ready on 20 years | 2.20% |
| ready on 25 years | 2.42% |
Source: Credit Logement/CSA Observatory – December 2022
In detail, the observatory’s study divides borrowing households into 4 groups. The first is made up of the best files. Over 15 years, they obtain an average rate of 1.78%of 2.01% over 20 years and 2.12% over 25 years. On the other hand, for the last group consisting of borrowers with the lowest incomes, the rates are respectively 2.41% over 15 years, 2.56% over 20 years and 2.66% over 25 years.
Loans that get longer
In fact, 15-year loans are increasingly rare. In the last quarter of 2022, 65.2% bank loans for home ownership were granted over a period of between more than 20 years and 25 years, compared to 55.2% in 2021. At the same time, production of short-term credit is at an all-time low. The share of the shortest loans, 15 years and less, is now only 14.3%against again 16.4% in 2021.
As a result, in December, the average duration of loans reached 20.7 years old in December, against 13.6 years old in 2021. But this extension is no longer sufficient to offset the consequences of rising housing prices or cushion the consequences of the increase in the required personal contribution rates, notes the observatory.
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Indeed, the latter has climbed 12.3% in 2022. During the last quarter, the level of the average down payment was 43.5% higher than that observed in the fourth quarter of 2019. Such a rapid and lasting increase had never before been observed, notes the observatory.
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