It is a record whose real estate borrowers would have been gladly passed. This Monday, October 6, just after the announcement of the surprise resignation of Prime Minister Sébastien Lecornu, who had finally unveiled his government the previous evening, the rate of theOat (assimilable bond of the Treasury) at 10 years has jumped, at more than 3.61%unheard of since March. At the start of the afternoon, this rate, required by international investors to lend France in the financial markets, was still 3.57%, against 3.51% on Friday evening.
This “Handy pressure on French rates (borrowing) may be accentuated by a New dissolution of the National Assemblythat the President of the Republic could be forced to announce in the coming days, given the inability to find a compromise with the forces involved in the National Assembly ”advance the management company Edmond de Rothschild Asset Management.
Unpaid rents: owners, this error on the signing of the deposit may cost you very dearly
A rate at 3.50% in December?
The increase in rates at 10 years adding the cost to which banks finance themselves in the financial markets, they reflect it on the rates they lend to their customers, so as not to lose money. Imagining a censorship of the Lecornu government and sustainable political instability, This is not very different from the crisis caused by the resignation of the Prime Minister, the broker Tousfinance predicted last week of new increases in rates by the end of the year. But in still very moderate proportions, which would carry the average rate of real estate credits over 20 years to 3.50% in December, Against 3.30% at the beginning of October.
A rate of 3.50% at the end of 2025 is also the level on which Jordan Frarier, president of Foncia Transaction, who spoke during a press conference on October 2. “Even if the rates go back to 3.5% over 20 years, I don’t see the market seize, The average purchase price being only 170,000 euros in our network »estimates the leader. In fact, at the current rate of 3.30%, borrowing 200,000 euros over 20 years requires reimburse 1,139 euros per month, calculates you. A rate of 3.50% would bring this amount to 1,160 euros, i.e. an increase of only 21 euros.
Housing: why Minister Valérie Létard slammed the Lecornu government in advance the Lecornu Government
Secure its mortgage rate
Certainly, “Political instability can cause a slight start in French sovereign rates”as we saw this Monday, and as we also noticed at the end of August when François Bayrou had decided to solicit a vote of confidence of the deputies, admits the Cafpi broker. But “Bond markets often react hot before stabilizing”he relativizes. He too judges that This increase in French borrowing rates “Will remain limitedunless a lasting crisis ”. However, “In times of uncertainty, it is better to secure its mortgage rate as soon as possiblerecommends Caroline Arnould, Director General of CAFPI. The real risk, for buyers, is to lose their funding ”. According to her, average rates over 20 years being to “A still attractive level, nothing justifies to wait” To request a credit
An opinion shared by the association of CNCEF Crédit brokers, for whom “The error would be that, in this context (of political instability), households stop their real estate purchase projects”. Indeed, today, “We can buy with reasonable and more attractive rates than a year agoand the banks continue to lend ”she underlines. You might as well take advantage of it to try to “Become a owner before retirement, an imperative for 73% of French people”recalls the association, citing a study by the Montaigne Institute published last August. A need “The previous Minister of Housing, Valérie Létardhad understood well “underlines in passing CNCF Crédit, “Regretting that the work she had started to undertake is stopped”.
