Real estate credit: where are the interest rates in September 2022?

Real estate credit: the market is freezing

Rates increased slightly in September, given the few grids communicated
at the beginning of the month from the partner plants of Emprunt-direct.com. While September
traditionally marks the end of summer – a quiet period in terms of credit – institutions
banks were, in many cases, less active in terms of transmission of
scales, being for the most part less proactive on the home loan segment and in fact less so
real estate prescription applicants.

Banks reluctant to accept new files

Most partner banks, as in August, did not send out new networks this month and are still being reluctant to accept files. You will also notice that this
proportion tends to increase further at the beginning of the month. However, for the few factories that supplied nets, Emprunt Direct showed a fairly sharp rate hike, reflecting the new yield increases seen in the bond markets.

More than half of credit applications are rejected

Banks have pulled out of the real estate credit markets in recent weeks,
an increasing proportion no longer accept new applications. The low level of wear observed
since spring it has forced factories to be less flexible in terms of tariffs “,
explains Alban Lacondemine, founding president of Emprunt Direct.

And to continue: Limited by the level of usury to 2.60% for fixed-rate loans with a maturity of less than 20 years and to 2.57% for fixed-rate loans with a maturity of more than 20 years, banks do not necessarily intend to lend on Whose margin is currently very limited. More than half of the files presented are now rejected or are not even supported by banks, even if they could be financed a few months ago. This wait-and-see attitude should continue at least until the new usury rate is set at the end of the month. of September “, says Alban Lacondemine.

The only hope for credit professionals is the increase in the usury rate

What is certain is that financial institutions seem to have little room for maneuver. ” After falling to a low of 1.35% in early August, 10-year OAT rates, which are a benchmark for credit distribution, have recovered nearly 85 basis points and are now more or less around. at 2.20% “, assumes the position of founding president of Emprunt Direct.

The only small hope is the usurious rate hike in early October, which could allow some players to replenish some of their margins and reposition themselves in the home loan segment. However, in this context of tighter credit conditions and less willingness to lend by institutions, the production of home loans should undoubtedly suffer at the end of the year.“, He concludes.

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