They were close to it in May and June marked the achievement of the 4% mark for rates on mortgages over a period of 25 years. Over 20 years, we remain for the moment slightly below 4%.
Like every month, the publication of the new usury thresholds (4.68% for loans over 20 to 25 years) opened the door to a new increase in the scales established by the banks. For June, it is therefore still around 20 additional basis points.
The rates have almost quadrupled!
According to the June scales of the online broker Pretto, borrowers in the annual income bracket below €40,000 are now offered rates of around 3.9% over 20 years and 4.10% over 25 years, while profiles with annual incomes between 40 and 80 KE access approximately 3.70% over 20 years and 4% over 25 years. For high incomes of more than 80 KE, the rates still go down around 3.60% over 20 years and 3.80% over 25 years.
It has now been 17 months of consecutive increases for borrowing rates which have almost quadrupled, from just over 1% at the start of 2022 to 4% today.
Real estate purchasing power at half mast
As a result, households’ real estate purchasing power continues to decline in the face of house prices which are still slow to fall. Given the rule of maximum debt ratio of 35%, at a given salary, the rise in rates further reduces the borrowing capacity each month, unless the duration of the loan is extended or more contribution is mobilized. staff, which is becoming less and less possible for most buyers.
The hope of renegotiating his credit
For the rest, everything will depend on the European Central Bank’s next decisions on its key rates (next meeting on June 15), knowing that some increases still seem necessary to accompany the fall in inflation. The decline in inflation observed in Spain, Germany and France for the month of May nevertheless gives hope that this cycle of rate hikes will end in the second half of 2023.
Later, key rate cuts could even occur to promote growth. Those who borrow today at 4% can thus hope to renegotiate their rate in the coming years, knowing that it takes a drop of at least 0.8 point compared to the initial rate for a repurchase of credit to be interesting.
| Money & You according to brokers’ scales | ||||
|---|---|---|---|---|
| Loan term | 10 years | 15 years old | 20 years | 25 years |
| Average rate | 3.20% | 3.50% | 3.75% | 4.00% |
| Minimum rate for the best profiles | 2.90% | 3.30% | 3.50% | 3.70% |
