Real estate loans: historically low rates

Real estate loans: historically low rates

The confinement has aroused the desire to move. Moreover, mortgage rates are historically low. According to figures published by the Banque de France, they fell to 1.15% on average in April.

Real estate loans: historically low rates

Currently, mortgage rates are historically low: they have fallen in two years, falling to 1.15% on average, all periods combined. This decrease in particular made it possible to achieve significant savings. For example, for a house of 200,000 euros, with a loan over 20 years compared to last year, thanks to a lower rate, it is now possible to pay out 7,623 euros less.

Increasingly long credits

This situation is unprecedented according to Gaëlle de Sousa, director of the “Vous Financer” agency in Boulogne-Billancourt (Hauts-de-Seine): “We thought we had reached the limit three or four years ago, when we were initiating a lot of buybacks for our clients. But for once, there, it continued to decline.”Loans are also increasingly long: the average term now stands at 236 months on average, or nearly 20 years. According to some experts, these rates should remain low for the next few months.

Among our sources

Bank of France

https://www.banque-france.fr/statistiques/credit/credit/credits-aux-particuliers

The Housing Loan Observatory

https://www.lobservatoirecreditlogement.fr/derniere-publication

We focused on the credit term chart.

235.9 months rounded to 236 months for the sake of pedagogy for TV

Telephone interview with the real estate loan broker MeillTaux

Non-exhaustive list