Housing credit: the acceleration of real estate prices impacts the demand

Financing Company has delivered its latest study on the evolution of the real estate market in France. Focusing on the evolution of prices and real estate rates, its analysis joins that of the Credither Guide: the increase in mortgage rates has given way to near stability while rock prices continue to grow. To the point of changing the situation for borrowers.

An increase in mortgage rates is running out of steam

An increase in mortgage rates is running out of steam

Since December 2016, rates have gone up. The strongest increase came in February: but since April, the increase has given way to near-stabilization. Here, the observation is clear: real estate rates have not moved – or almost – for several weeks.

They continue to maintain exceptional levels for future buyers. According to the bonding agency, interest rates are at their 2016 summer level.

Financing Company provides a comparison of the evolution of real estate rates in recent years:

  • 1.57% in June 2017. This is a general average rate. Per term, Financing Company 1.41% over 15 years, 1.60% over 20 years and 1.87% over 25 years);
  • 1.56% in April and May 2017;
  • 1.34% in December 2016;
  • 1.60% in June 2016;
  • 2.20% in December 2015;
  • 2.38% in December 2014;
  • 3.08% in December 2013;
  • 3.22% in December 2012.

We can see that compared to June 2016, real estate rates remain below 2 basis points on the old market and 8 basis points on the nine.

Real estate rates are low, which makes a large number of households solvent. Problem: ” the degradation is fast, ” says Financing Company. What you have to understand is that price increases are accelerating, both in the old and the new.

What is the average duration of real estate rates?

What is the average duration of real estate rates?

In Q2 2017, the average loan term is 215 months. But this duration varies according to the type of good:

  • 231 months in the new;
  • 229 months in the old.

High durations that have been growing since the end of 2016.

In terms of ” relative cost of loans ” , the latter reaches 4.08 years of revenue in the second quarter of 2017 (compared to 3.90 years 1 year ago, in the corresponding period), ie ” its highest level recorded since the beginning of the years 2000 “.

Financing Company, surety company

Financing Company guarantees home loans to borrower households. This is called a credit guarantee. The guarantee fee consists of:

  • a commission paid to Financing Company ;
  • a payment to the mutual guarantee fund. Part of it is returned after the repayment of the mortgage.

Do not forget the mortgage insurance

Do not forget the mortgage insurance

The warranty – and the warranty fee – is an important part of your case but it’s not the only one. The borrower insurance is also a parameter to take into account, and not least, since it constitutes the 2nd largest cost item in a financing file. And to reduce the cost of your insurance borrower, nothing beats the comparison.

For the best rates, do not hesitate to use our comparator mortgage insurance.