Small increase in real estate rates in September 2022

The increase in real estate rates continues in this return to September 2022. The increase, on the other hand, remains quite contained compared to that of the beginning of August. Indeed, if borrowing rates continue their upward movement that began since the beginning of the year, some banks seem to adapt and show new solutions. A favorable environment for project promoters with sufficient funding capacity.

No landing in mortgage rates this fall

Rates are up again for the eighth consecutive month, but this rise remains under control thanks in particular to the attrition rate.

Here, in detail, is an update on current conditions and the evolution of average rates in September:

  • in 7 years the market rate increases by 0.05 points to reach 1.55%;
  • in 10 years the average rate stagnates at 1.60%;
  • in 15 years the market rate goes from 1.70% to 1.75%;
  • in 20 years the average market rate remains fixed at 1.85%;
  • in 25 years, the market rate exceeds the symbolic bar of 2%, reaching 2.05%.

Therefore, on the side of the average rates observed on the market, the upward effect is very slight, even painless, with an increase of only 0.05 points over 7.15 and 25 years. As for the evolution of the average rate over 10 and 20 years, it remains unchanged. On the side of the best rates, however, all the durations recorded increases from 8 to 19 cents. Therefore, the best mortgage rate in 20 years increased by 0.08 points to 1.48%.

The institutions remain open to funding

The recent decline in 10-year treasury bills (0AT) has allowed banks to refinance themselves. A drop in the cost of money that has given the credit market some flexibility, as we explained last month. The slowing trend in rate hikes should continue at least until next month. The concession conditions, in fact, could change again, or even become more flexible with the next revaluation of usury rates scheduled for October.

Furthermore, it is clear that many banks remain open to financing and are ready to offer favorable mortgage rates to borrowers. Some banks are even proposing new solutions to win over customers with the return of the capped floating rate. The relaunch of capped floating rate loans can in fact make it possible to circumvent the constraint of usurious rates as the starting rate is lower than the fixed rates observed on the market.

Access to credit at better conditions

In this early September, the inflationary peak and the rise in real estate rates since January 2022 weigh on the French real estate purchasing power. In this context, loan applicants may be tempted to postpone their purchase plans. However, it should be noted that credit rates remain favorable. Banks seem to be showing ambitions of conquest with rather stable scales and new financing strategies with the return of adjustable rates.

In a market that is becoming complex, access to credit at the best rate is becoming a matter of experts. The measures imposed by the High Council for Financial Stability (HCSF) continue to bind the institutions, which must be vigilant in the study of borrowers’ files. This is why it is more than ever recommended that loan applicants seek out a mortgage broker. Its mission? Get the best financing conditions from the consolidation of the loan application process to the release of funds.

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