Whatever the duration (15, 20 or 25 years), average mortgage rates have now all passed the 3% mark. And the lull is not for now.
The inexorable ascent continues for real estate credit. According to various brokers, the 3% is now reached, or even exceeded, for loans over 20 years. Broker Pretto even mentionsan average rate of 3.50% over 25 years. And bad news: the rise in mortgage rates should not stop there and could reach 4% by the summer.
This new increase was expected, since on Thursday March 16, the European Central Bank (ECB) announced a new increase of 0.5% on its key rates, de facto impacting mortgage rates.
Average rates in banks at the beginning of April
- On 15 years old: 3.06% according to Meilleurtaux; 2.95% for Loans; 3.24% according to Pretto.
- On 20 years: 3.20% according to Meilleurtaux; 3.05% for Loans; 3.40% according to Pretto.
- On 25 years: 3.30% according to Meilleurtaux; 3.15% for Loans; 3.54% according to Pretto.
Average rates noted by the brokerage networks, based on the scales provided by the banks. They do not take into account the cost of borrower insurance.
Real estate credit: find out the lowest rates for your project
Inevitably, this new rise in rates is another blow to the borrowing capacity of the French. Indeed, Pretto notes that with a new average rate of 3.40% over 20 years, it is now necessary to benefit from a net monthly income of 4,927 euros to be able to borrow 300,000 euros over 20 years, i.e. a hundred euros more than in March.
Real estate credit: despite soaring rates, French borrowers are lucky
In this context, some buyers could be tempted to postpone their project. In an OpinionWay survey for the Lafort network, 68% of those questioned believed that they would give up their real estate project in the event of credit rates equal to or greater than 3%.
Good news, however: Mortgage rates change in the same proportion as wear and tear. So, the average rate over 20 years has gained 24 basis points in one month according to Pretto, while the usury rate, the maximum all-inclusive rate above which a bank cannot lend, rose from 4% to 4.24% between March 1 and April 1 for loans over 20 years and more. The increase in the rate of wear has the immediate consequence of unblocking the files of certain borrowers, confirms Pierre Chapon, co-founder of Pretto.
Find the best rate for your real estate project