Once again, banking establishments are taking advantage of the monthly increase in the usury rate to raise their scales. The average rate for a 20-year loan is now trading at 3.62%.
Yesterday 3%, tomorrow 4%? Month after month, mortgage rates continue to rise. According to the new scales provided by the banks, the rates have increased by another 10 to 25 points depending on the durations and the establishments. Thus, while the average rate over 20 years was 3.20% at the beginning of April, it now trades at 3.37% one month later (between 3.20% and 3.62% depending on the scales received by the brokers).
Average rates in banks at the beginning of May 2023
- On 15 years old : 3.20% according to Meilleurtaux; 3.10% for Loans; 3.43% according to Pretto.
- On 20 years : 3.30% according to Meilleurtaux; 3.20% for Loans; 3.62% according to Pretto.
- On 25 years : 3.45% according to Meilleurtaux; 3.25% for Loans; 3.80% according to Pretto.
Average rates recorded by brokerage networks, based on scales provided by banks. They do not take into account the cost of borrower insurance.
How to explain this new increase? “Once again, rate increases follow that of usury, proof that the banks have still not regained their financial balance », Analyzes Pierre Chapon, co-founder of the broker Pretto.
The usury rate, the maximum “all-inclusive” rate above which a bank cannot lend, has in fact, by decision of the Banque de France and the Ministry of the Economy, been reviewed every month since February 1 and until July. For the month of May, it is set at 4.52% for the longest loansand 4.33% for loans between 10 and 20 years.
Wear rate: good and bad news for your mortgage
Faced with this continuous rise in rates, who can still borrow today? “Those who are more easily eligible are second-time buyers who have a property to sell and who, thanks to the added value made, arrive with a contribution and therefore have a smaller loan to make “Judge Maël Bernier, spokesperson for Meilleurtaux.
“An owner who has finished repaying his credit and who is going to sell his property to buy bigger is going to be a winner. On the other hand, a second-time buyer who has only repaid 5 or 10 years over 20 or 25 years is more complicated, ”tempers Sandrine Allonier, spokesperson for the broker You finance.
For the same credit, you have to earn 800 euros more compared to May 2022
For all borrowers, obtaining a mortgage is therefore more and more complicated as the rates increase. According to Pretto, compared to April, a borrower must earn almost 100 euros more monthly to borrow 300,000 euros over 20 years in May. “If we compare these rates to those practiced in May 2022, you have to earn about 800 euros more per month to borrow 300,000 euros “, notes the broker again.
In this context, the number of mortgages continues to decline. According to the Crédit Logement CSA observatory, the number of loans granted is down 40.6% over one year. A significant fall, which is explained as much by the difficulties encountered by borrowers as by the reluctance of banks, less inclined to lend in a period when the cost of the resource increases.
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“Some banks have therefore stopped their production of mortgages”
“Banks today are saying the same thing: the cost of the resource is too high and banking establishments no longer earn money on mortgages. Some banks have therefore stopped their production of mortgages, ”says Maël Bernier, spokesperson for the broker Meilleurtaux.
A trend confirmed by Pierre Chapon: “Under these conditions, mortgage loan volumes remain low. Our partners, however, hope for a gradual reopening of the floodgates from the third quarter of 2023”, develops the co-founder of Pretto.
“Currently, the 10-year OAT rate (the assimilable bonds of the Treasury known as OAT are debt securities of the French State and serve as a reference for the banks to fix the interest rates which they grant Editor’s note) is at 3.02% (as of April 27, 2023, editor’s note). If these rates stabilize, and while the attrition rate will increase again in June and July, banks will reopen the mortgage tap, confirms Maël Bernier. The supply should be greater this summer, and even more certainly in September. »