Financing the acquisition of your property via a mortgage requires many steps that require time and negotiation skills. Discover all the reasons to use a broker to find your mortgage.
If you have looked into the subject, you must have noticed, the rates are historically low and there can be no more incentives to take the step of buying. Here is our file of the day to find out more!
July 2016 results
Each month, the Crédit Logement / CSA observatory publishes the overall average observed on interest rates. The mortgage rate reached, according to the last report, an average of 1.77% against 1.81% in April, 2.09% in February and 2.15 in January 2016. A spectacular average which takes take into account the rates in new and old but note however, without taking into account insurance costs.
A continuous decline
These monthly reports confirm the continuous fall in rates since 2010. From the first tremors, market professionals anticipated a constant and regular decline.
Because the search for goods peaks between March and June with more transactions, we observe rates that “drop” from the first days of spring. This is explained by the demand from families who wish to enter their new accommodation at the start of the school year in September.
What lower rates mean
The first advantage, apart from the financial aspect, is the lengthening of loan durations which thus favors the accession of young people and first-time buyers. Since 2016, 55.2% of loans have been spread over 20 years compared to 44.5% in 2013. Concerning the plans granted over 25 years, they represent 20.6% of loans granted against 14.4% in 2014.
This observed decrease helps to relax a so-called saturated market like that of Paris and its suburbs.
It makes it easier for modest households to access property and the good news is that there is no increase planned for the coming months.
Finally, thanks to the drop in rates, it seems more relevant to limit its initial contribution and borrow more from your bank, thus putting aside your savings to reserve them for work or for a future investment.
And you, did you take advantage of the lower rates to buy? Tell us everything, the blog is there for that!