3%! The average rate of real estate loans granted in February is approaching the symbolic bar of 3%. In fact, it is already largely exceeded for many households who take out credit for 20 years or more.
2.61% in January, 2.82% in Februaryaccording to the Observatory Credit Housing / CSA: it is only a matter of weeks before the average rate of real estate loans distributed reaches the symbolic bar of 3%.
A year ago, this average rate was still 1.13%. It has continued to increase ever since. And the rate of increase has further accelerated since the start of 2023: it reached 26 basis points (bps) in January, then 21 bps in February, compared to an average of 11 bps per month in 2022.
Expected acceleration
This acceleration was expected. It is, in fact, closely linked to the evolution of usury thresholds, these maximum rates, including fees, that banks are authorized to charge. Since the beginning of the year, these ceilings are updated every month, and more quarterly as is customary. In January, this ceiling increased by 52 basis points (3.57%) for loans with a repayment term of more than 20 years, which represent more than two thirds of current production. It took another 22 basis points in February (3.79%), then 21 in March (4%).
This monthly payment, scheduled until next July, has one purpose: to allow real estate rates to increase at the same rate as refinancing costs banks, affected by the sharp rise in key rates by the European Central Bank. Objective: limit the cases of exclusions which can appear when the profitability of the loans drops due to a margin that is too small with wear. Exclusions suffered especially by the poorest and oldest households.
Real estate rate: good and bad news for your credit in March
Borrow less than 3%, a privilege in the making
In practice, however, benefiting from a rate lower than 3% is already more than a memory for the majority of borrowers who borrow for 20 years and more. According to February figures from the Observatory Credit Housing / CSA, published on Thursday, on 25-year loans, rates exceed 3% for three-quarters of borrowers, even going up to 3.50%. On 20-year loans, the 3% barrier is also crossed for half of the borrowers.
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Borrowing under 3% is therefore on the way to become a privilege reserved for borrowers who have the luxury of being able to repay over less than 20 years, and/or who have a attractive and low-risk profile for the banks, with a good contribution and a strong savings capacity.
Find the best rate for your real estate project