A Rise in Interest Rates on Loan As Soon As Back to School
Interest rates have been revised down since the beginning of 2017. The month of June is marked by stable interest rates. The question that arises is: can the rates be higher in September? Credit professionals have their say on the situation and the future of the market.
Real estate credit: the situation of interest rates in September
In September, interest rates are expected to decline, following the one observed in previous months. The current stability of rates should continue even if there is no guarantee that it can be affirmed precisely. So far, the market is influenced by the commercial objectives of the banks, which will also have an impact on interest rates in September.
However, nothing is sure yet. The banking institutions will set the rates applicable to the re-entry after taking into account many parameters. Stability can be maintained under different conditions. Banks must first check the level of margin they earn. In addition, they must analyze their objectives during the summer. In addition, they must take stock of the implementation of recent regulations, the evolution of OAT, etc.
The real estate market: a review of the situation in July 2017
As a reminder in July 2017, interest rates were expected to stagnate. Banks have made fewer movements in rates. Two rates were only reviewed. The best mortgage loans have benefited from a declining rate, including loans over 25 years and those over 7 years. Going further, borrowers with 15- and 20-year loans also benefited from a declining rate.
Average rates have not changed much since then. On a general assessment, the mortgage rate was an average of 2% for 25 years and 1.55% over 15 years. These are the durations most chosen by the borrowers who finance their real estate projects.
Real estate credit: stable rates in June
The Credit Housing Observatory or CSA indicated a stabilization of interest rates during the half of 2017. Rates evolution was very slightly up, but it stabilized at 1.57% during the month of June. A stagnation that continued in July with rates that have remained attractive to attract many borrowers. We can say that the significant increase that took place during the first quarters was a bit scary. But the month of June gave borrowers some hope.
An optimism that continues the next month and that we expect stagnation also in September. You wonder how to compare mortgage proposals. The most effective solution remains the use of the best comparator of immo loan offers .