And it continues! Mortgage loan rates continue to fall, reaching an average of 3% this month over 15 years, 3.30% over 20 years and 3.75% over 25 years. Certain durations even declined by 20 points in March, such as the minimum rate over 25 years, which went from 3.17% to 2.97%. In short, the rates are low, very low and it is time to take advantage of them.
But why are the banks lowering their interests so much?
First of all, because it is spring and that “traditionally, March is the month of real estate with specialized fairs that take place all over France. “Explains our communications director, Barbara Coumaros” so the banks want to take advantage of this and attract a maximum of new customers “.
Secondly, because the OATs, the rates at which the banks themselves borrow the money then lent to individuals are very low. If borrowing costs them little, they can continue to lend at low prices while maintaining a reasonable margin. For the moment “the credit conditions are therefore not far from approaching the historic lows” according to Barbara Coumaros.
However, be careful, while they were at 2.09% at the beginning of March, “OATs go up slightly to 2.13%”. If this increase were to continue, credit rates for individuals would, therefore, rise automatically.
Is it worth taking a variable rate?
Not in this context. Variable rates are indeed very close to fixed rates which are themselves very low. It is, therefore, better to fix your loan at a very low fixed interest than to take the risk of a variable rate which would then rise, even slightly.
Take advantage of the “real estate month”
It’s real estate month, the banks are fishing for customers with very attractive rates, prices are falling … so if you have a project, take advantage of this favorable period.
Besides, the problem with floor rates is that they can’t go down any further. So for comparison, the last time we got such low rates was in June 2013, where banks posted an average of 3% over 15 years, 3.35% over 20 years and 3.70% over 25 years.
Since this period, interest rates have continued to fluctuate without ever crossing this barrier. It, therefore, seems that we are at the minimum level and that a further decline is unlikely.
“The context is difficult to anticipate, so it is preferable for future buyers with a short-term project to position themselves before the summer ” concludes Barbara Coumaros.