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Mortgage loans: rates in the regions rose slightly.

December 1, 2019 • Scott Garvey

 

Before the long weekend of August 15 which awaits the French, we come back to the mortgage rates that are practiced in August in the different regions of France. What are the news, knowing that we have identified 17 banks that enhance their banking grids.

Majority of minimum rates progresses

Majority of minimum rates progresses

In recent weeks we have noticed that the minimum rates (which benefit the best profiles) have changed little. This month, a lot of mini borrowing rates are going up. In detail, out of 42 mini credit rates (7 regions, 6 durations):

  • 30 real estate rates increased from 5 to 13 cents ;

  • 12 stable mini credit rates.

As for average rates, we note that:

  • out of 42 credit rates, 24 rates stagnate ;

  • 18 rising average property rates, all regions combined. These increases are 5 or 10 cents and it is only the durations 10, 25 and 30 years that are affected by these increases.

The most requested durations of borrowers now display:

  • over 15 years : 1.14% in minimum rates on all regions except the Rhône-Alpes-Auvergne region with 1.12%. As for the average loan rate, it is equivalent throughout France: 1.60%;

  • over 20 years : 1.31% for the best minimum rate in Rhône-Alpes-Auvergne, then 1.36% in the North and 1.40% in Ile-de-France. Finally, the highest minimum rate over 20 years reaches 1.42% and is found in 4 regions (East, Southwest, West, Mediterranean). However, the average borrowing rate over this period is the same everywhere in France: 1.85%.

Find out all the mortgage rates for your region in our mortgage rate barometer.

The last quarter of the year will be decisive

The last quarter of the year will be decisive

Ok, we said it before. The banks will take stock of their objectives at the start of the school year and may adjust their scales accordingly. However, there will be other preponderants. First, government decisions relating to housing (Pinel, Zero rate loan, APL, etc.) will influence the real estate market. But also the prices of stone which continue to rise. These two aspects could accelerate demand in the short term and have negative long-term impacts.

Finally, the banks will show an even greater interest in high-end profiles. In fact, efforts on the scales could be made, influencing downward the minimum and average interest rates. But which will only impact the best profiles.  

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