Real estate credit: rates continue to fall in December, despite the threat of government censorship

Banks continue to reduce the rate of their real estate loans in December. The threat of government censorship by Parliament does not frighten them.

Capital Video: Real estate credit: rates continue to fall in December, despite the threat of government censorship

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It has already been a year since mortgage rates began to fall, and the banks have not said their last word. According to the rate schedules received by the broker Vousfinancer, the interest charged to households is still down by 0.05 points on average in December, compared to November. “The improvement benefits the best profiles and to a lesser extent first-time buyers”explains Sandrine Allonier, spokesperson for the broker. Several regional banks have decided to extend or even strengthen the subsidized rates they grant to new owners.

In detail, loans over 15 years come with an average rate of 3.15%. For those spanning 20 years, it reaches 3.35%. Finally, 25-year loans are charged at 3.55%. “Depending on the establishments, the rates are either stable or decreasingconfirms Maël Bernier, spokesperson for the broker Meilleurtaux. There is no need to panic at this stage.”. The political context, marked by the possible censorship of the government of Prime Minister Michel Barnier by Parliament, could cause the French State’s borrowing rate to jump (OATs, for Obligations assimilated to the Treasury), on which the banks are support to establish their rate scales.

“There is no sign that the banks are worried about anything.”

“In view of the scales received, nothing shows that the banks are worried about anything, believes Sandrine Allonier. They have learned to cope with a sudden increase in OATs and to absorb the shock. What matters are the rates set by the European Central Bank. which should fall again in December. Especially since the borrowing rate on 10-year French debt, although it may increase in the coming weeks, fell below 3% on November 29, a sign that the markets do not seem so worried.

As a precautionary measure, the president of the Institute of Real Estate Services Management, Henry Buzy-Cazaux, “recommends to households who have a project” not to “not delay and to borrow as soon as possible”. Brokers indeed believe that the cycle of rate cuts is coming to an end, anticipating an average rate floor of around 3% by the first quarter of 2025, therefore leaving room for just 0.2 points of decline on average. until then.