Credit rates which are stabilizing, a renewed appetite of banks for real estate loans… The situation becomes less complicated for candidates for borrowing at the start of December.
Good news for borrowers: at the start of December, real estate loan rates are on the verge of stabilizing. Thus, the broker Meilleurtaux notes, between November and December, a stabilization of the average rate over 15 years (4.25%), and slight increases over 20 years (from 4.40% to 4.44%) and over 25 years (from 4.50% to 4.58%).
The rates received are stable, confirms Mal Bernier, communications director at Meilleurtaux. Some establishments are even seeking new customers and have lowered their rates, further indicating that they are ready make additional efforts on files that they find interesting.
Average rates in banks at the beginning of December
- On 15 years: 4.20% according to Empruntis, 4.25% according to Meilleurtaux, 4.15% for Cafpi, 4.40% at Emprunt Direct.
- On 20 years: 4.30% according to Empruntis, 4.44% according to Meilleurtaux, 4.30% for Cafpi, 4.55% at Emprunt Direct.
- On 25 years: 4.40% according to Empruntis, 4.58% according to Meilleurtaux, 4.45% for Cafpi, 4.65% 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.
The paradigm shift is major: while at the start of the previous month, all establishments generally moved up their grids, this month they are acting rather in a dispersed order. If a significant portion of banks left their rates stable or almost stable, another portion chose to raise the rate scales by up to 20 basis points. Others have, conversely, lowered their grids by 10 basis points. Last month, only one major establishment had, in mid-November, lowered its bar, in order to be more competitive, details the broker Emprunt Direct in a press release.
Towards a rate cut in 2024?
And the improvement should continue in the coming months. In fact, the rate of 10-year OATs (Assimilable Treasury bonds known as OATs are loan securities of the French State and serve as a reference for banks to set the interest rates they grant, Editor’s note) fell back below the 3% mark (2.88% on December 3) after coming close to 3.60% at the beginning of October.
Recent increases in rates, coupled with a stabilization of yields on the interest rate markets, have strengthened bank margins in recent months. The return of profitability in the real estate loan segment being a prerequisite for the recovery of production, the conditions seem to be gradually being put in place for a resumption of distribution of housing loans in 2024, concludes Emprunt Direct.
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