Little movement on mortgage rates in early summer. Real estate credit brokers report slight declines in banking networks which offer barometers close to the last few months.
Real estate credit brokers report slight declines in banking networks which offer barometers close to the last few months.” width=”640″ height=”424″ />
Banks continue to borrow at very low rates
For several months alarmist sirens have been on the rise, announcing the upcoming rise in interest rates. However, for the moment, the rates do not go back up. The scales published at the beginning of July 2018, like those received the previous month, show generally stable rates or even slightly lower.
Why mortgage rates do not come back? The answer is simple: Banks benefit from optimal refinancing conditions. They borrow at extremely low rates from the Sentro Bank. Treasury equivalent bonds (OAT) are also very low (0.65% in July). Their level offers an additional guarantee of keeping rates low for mortgages granted to individuals.
The current level of rates is also explained by the fact that banks have to meet ambitious commercial objectives and the beginning of the year has not been very favorable to them. Thus, to encourage individuals to borrow, they must maintain relatively low rates. With this in mind, a large number of institutions now offer 25-year financing with no contribution, with an average rate of 1.60%.
The arrival of online banks in the market benefits borrowers
The gradual arrival of new entrants in the mortgage market, especially online banks, is favorable to borrowers. Indeed, they can compete to expect an even lower rate. Thus, the choice widens for future buyers.
Industry experts do not expect a sharp rise in rates for the end of the year. The beginning of autumn will mark the entry into the last annual phase of winning customers for banking institutions. Borrowers who plan to realize their real estate project during this period can, therefore, remain calm.
To estimate the cost of your mortgage, it is recommended to make a simulation online. Most often, it is sufficient to indicate the number of monthly payments desired, the amount of the personal contribution, the type of property and the repayment period.