Falling Real Estate Rates, Are Borrowers Really Coming Back?

Certainly real estate rates have fallen and the French want to buy it. But despite all this, improvement does not happen immediately.

Real estate rates have fallen, but is that enough to make it happen? Return the borrowers? The CSA Credit Logement Observatory has published its study on the first quarter of 2024. It shows that 2024 started with the average loan rate falling by about 10 basis points per month. Rates thus rose from 4.21%, which peaked in November and December 2023, to 4.13% from January 2024, then to 3.99% in February and 3.90% in March.

Real estate credit is finally taking off again!  - 04/17
Real estate credit is finally taking off again! – 04/17

For its part, broker Woosfinancier says that in April, some banks reduced their lending rates further, but more modestly than at the beginning of the year, by 0.05 points to 0.20 points. “On average, it is currently possible to borrow at 3.7% over 15 years, 3.9% over 20 years and 4.1% over 25 years, but the lowest negotiated rates can reach 3.5% over 15 years, 3.6% over 20 years and 3.9% Goes 25 years.

But be careful not to be overly optimistic. But BFM Business, Daniel Ball, The chairman of Crédit Mutuel explains: “I think it will decline further, but I would be cautious in saying it will decline rapidly because even though rates have risen rapidly in recent years, we are “I was staying at a reasonable level.” “Knowing five or ten years in advance.”

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According to the president of Crédit Mutuel, the problem lies more in the real estate market stricto sensu. Prices of goods have not decreased sufficiently”. And broker Woosfinancier thinks the same. “Since the beginning of the year we have felt a return from potential buyers who estimate their financing envelope (calculate their borrowing capacity) before resuming their real estate project. who sometimes put it off, or who, inspired by positive messages on relaxation of loan conditions, want to become owners”, says its spokeswoman Sandrine Allonier. But she adds: “However , We are often still in the stage of calculating borrowing capacity or signing the credit search mandate.

“Overall, we are experiencing a clear recovery which has been confirmed week after week since the beginning of the year”, but the broker is cautious about the coming weeks. Certainly the French want to buy and are starting research again, but at the moment things are still in the project phase. Still good news to be told, Vousfinancer has reported a huge decline in loan rejections: “In numbers, – 60% in Q1 2024 compared to Q1 2023 (there are even fewer files)”.

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