Mortgage rates, do not stop falling! The Housing Credit Observatory / CSA has noted an average rate of 1.20% in July 2019, unheard of. Again.

The tumble continues

1.20%, it was about the average rate for a mortgage over 15 years at the end of last year, it is now the average rate “tout court”! The key rates of the ECB and the high volume of cheap savings as explained by the Housing Credit Observatory / CSA. A year earlier, it was 1.44%, while the average level was still 1.43% last February … For the fifth consecutive month, the monthly loss is 0.5 point. But where will it stop?

Less than 1% over 20 years for the best profiles

Over 15 years, half of the households benefit from a mortgage at a rate of less than 1%. The 4th group of borrowers, the one which gathers the least secure profiles for the lending institutions, receive a offers an average of 1.20% over 15 years, while those in the 1st group – the best profiles – can take out a loan at best rate average of 1.16%over 25 years. Over 20 years, they have access to a rate of less than 1% (0.93%).

The average duration set back

Rarely, in the margin of the fall in mortgage rates, it is also the average duration that fell to 229 months, against 230 in June. The share of contracts signed for a period of between 25 and 30 years fell (40.5%, -1.1 points), a phenomenon rarely observed in recent months. However, the proportion of funding beyond 25 years remains very high (41.3%), while less than one in three is signed over 20 to 25 years (30.5%) and 28.1% below 20 years. In ten years, prices have increased by more than 10% in France according to MeilleurAgents, while the duration of borrowing has increased by almost a year and a half at the same time.

Loans to compensate for the lack of input

Despite these unexpected conditions, the activity of the mortgage market stalled in July 2019. Comparing the volume of loans granted, however, it increased in sliding year compared to the previous one (+ 2.9% ), same for the amount of production (+ 10.7%).This offsets the observed decrease in the level of personal contribution(-6.9% since the beginning of the year).

 

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© 2019 Conceived by Ebox

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