Falling purchasing power, rising property prices, war in Ukraine … private demand for real estate loans is destabilized by this particular context.
Up 0.12 points in March compared to December 2021
The increase in credit rates has strengthened since January, with an average rate for the entire market at 1.18% in March, or +0.12 points compared to December 2021. In mid-April the average rate rose to 1.22%, or +0.16 points. A 1uh quarter 2022 stood at 1.12%, compared to 1.05% in 4And quarter 2021.
“Private demand is destabilized by the deterioration of its purchasing power and the increase in house prices, in a general context that has clearly worsened with the outbreak of the war in Ukraine, underlines the Credit Housing / CSA Observatory. . However, banking institutions are still trying to limit the consequences of the tightening of credit granting conditions ”, decided by the High Council for Financial Stability (HCSF).
That is to say, a household debt ratio that must not exceed 35% and a maximum credit period of 25 years.
An average rate of 1.13% over 20 years
In March, the average rate was 1.01% over 15 years, 1.13% over 20 years and 1.25% over 25 years.
According to the Crédit Logement / CSA Observatory, “the rise is somewhat slower on longer loans, widely used by borrowers with the lowest personal contribution, first-time buyers and some first-time investors. “
Less than 25% of borrowers obtain a rate of less than 1% in March (0.90% in 20 years, for example), which is the best profiles. But all borrowers benefit from loans at rates below inflation (2.87% in March, according to the harmonized price index).
The terms of the loan are getting longer
A 1uh quarter 2022, the average duration of the loans granted is 241 months (approximately 20 years). From September 2021 it gets longer. “It has thus reached levels never seen in the past”, remarks the Credit Housing / CSA Observatory. At 13.6 years in 2001 (163 months), it stood at 20.2 years in March 2022 (242 months).
“For a large proportion of real estate applicants and rental investors, a longer term allows access to credit despite the consequences of rising house prices and the impact of rising personal contribution rates. requests “, estimates the Observatory.
A decreasing number of loans granted
The number of loans granted decreased by 5.5% on 1uh quarter of 2022 year over year while 1uh quarter of 2021 has already been downgraded.
“On the other hand, credit production increased by 2.1%, due to the use of higher mortgages, a consequence of a greater personal contribution and the rising price of housing”, reports the Observatory.
The outbreak of the war in Ukraine had an impact on the demand for loans: “In the month of March alone, the number of bank loans granted decreased by 17.8% on an annual basis. “