The search for a mortgage promises to be difficult, by the end of December, for those who wish to acquire a property. First, the rise in interest rates continues. “Modest at the start of the year, the increase has accelerated with the pace of inflation and the strengthening of financial market tensions in the wake of the war in Ukraine [déclenchée le 24 février]. More than 10 basis points [soit 0,10 %] per month on average between February and June, the rise in the rate was faster in July (+18 basis points)”notes the latest study by the Crédit Logement-CSA observatory, published on Tuesday 18 October.
The rate of increase has since accelerated. “Almost all establishments show increases between 20 cents and 50 cents [point de base]. Very rare at the moment, only one bank indicates a drop, of 4 cents, and only on short loan periods, we point out at the broker Empruntis, which however observes a strong disparity according to the regions. The average rates over twenty years range from 1.90% in the South-West to 2.40% in Ile-France. »
Government bonds, which traditionally serve as a benchmark for setting mortgage rates, have risen by more than 260 basis points since the start of the year. And the banks are refinancing at significantly higher rates: more than 4% over long periods, over seven years. “These refinancing constraints lead to a gradual increase in the credit rates charged by banks”explains Olivier Lendrevie, president of the broker Cafpi.
“Defensive Reflex”
Since the beginning of the summer, certain networks, like Société Générale, Crédit du Nord or HSBC, have decided more or less to withdraw from mortgage loans to individuals. “Banks have a defensive reflex, because they do not want to practice a negative margin”, comments Ludovic Huzieux, co-founder of Artémis brokerage. A traditional loss leader to attract customers, real estate loans are now issued with circumspection when it comes to financing new customers.
“The deterioration in the profitability of new loans is causing a contraction in the banking offer, more particularly with a modest clientele already weakened by the current anxiety-provoking climate and by a loss of purchasing power”, notes the Crédit Logement-CSA observatory. And the situation should not relax anytime soon. “We have every reason to believe that rate scale increases will follow in the coming weeks”predicts Olivier Lendrevie.
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