In terms of mortgages, September is normally a good month for banks and borrowers. But the current situation could change that this year.
After a tough summer for the mortgage market, could September offer borrowers some respite? There will be a little bit of everything in terms of rates for this month of September which is ultimately a month of transition, estimates Ccile Roquelaure, spokesperson for the Empruntis broker. Indeed, September is the last month of credit production for the year 2022because all the files that will be heard in October will be credits released in 2023.
Two distinct strategies for banks
Two strategies could therefore collide: on the one hand, banks that have already achieved their targets for the year should slightly increase their real estate rates, because they no longer need to attract new customers. Conversely, those who have had more difficulties in recent months and who are late may be tempted lower rates a little to end the year well.
There are in fact two strategies, between troubled banks that are more aggressive in capturing customers and those that have them already conquering and that will slow down a little pending the 1 October dropout rate, notes Ccile Roquelaure, explaining that a banking partner has already announced a drop of 20 basis points to come:
Average rates in banks in early September
- ON 15 years: 1.71% according to the Partner; 1.70% for loans; 1.76% according to Pretto; 1.76% for Meilleurtaux.
- ON 20 years: 1.84% according to the Partner; 1.85% for loans; 1.94% according to Pretto; 1.92% for Meilleurtaux.
- ON 25 years old: 2.01% on average according to The Partner; 2% for loans; 2.07% according to Pretto; 2.07% for Meilleurtaux.
Average rates recorded by the brokerage networks, on the basis of the scales provided by the banks. They do not take into account the cost of the borrower’s insurance.
While the usury rate, the maximum rate at which banks can grant credit, is still set at 2.57% for loans with a duration of no less than 20 years, and even at 2.60% for longer maturities. however, attracting new customers can no longer increase the nominal rate. Because the borrower’s insurance fee, administrative costs and any brokerage fees are added to the latter. So many costs that inflate the overall credit rate which must therefore fall below the 2.57% threshold.
But some banks have no choice but to temporarily stop credit production. We are away from the usual September efforts, which is normally the month of promotions, notes Mal Bernier, spokesperson for broker Meilleurtaux. Today the balances we receive are almost exhausted, because the banks refuse to lend a loss. And while it has fallen in recent times, the 10-year OAT (the French government’s borrowing rate indicator, which is a benchmark for changes in the credit market in France) is now 2% income (2.22%). on September 1).
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Thus, despite Bercy’s request for an effort on rates to the banks, the average rate for this month of September is 1.88 for 20 years, compared with 1.76% in August. And in 25 years, it is difficult to find a rate of less than 2%. Unfortunately, with inflation steadily stabilizing above 6%, we can expect credit rates to start rising again in the coming weeks. Borrowing less than 2% could quickly become a memory of another timeconfirms Olivier Lendrevie, president of Cafpi, in his monthly editorial.
The situation is absurd … These French have deprived their real estate loans because of the usury rate