Home loan – which rates for the start of the school year

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After several quarters of consecutive increases, fixed mortgage rates have stopped rising since the start of the summer. The National Agency for Housing Information (ANIL) reports this stabilization and notes in its latest quarterly barometer that “The conditions for fixed rate loans are close to that of the fourth quarter of 2009”.


Stagnating rates after several quarters of increase

Between November 2010 (the date when rates had reached their lowest historic level at 3.22% on average over 15 years) and March (3.67% on average) rates increased at a rate of 10 basis points while that in the second quarter of 2011 the increase was 5 basis points per month. After 3.90% in June and July, mortgage rates remained stable in August at 3.91% on average (3.88% in the new and 3.90% in the old). Today, in its panel of banks studied, the National Agency for Information on Housing notes that the best fixed rate for a loan over 15 years (excluding insurance) is 3.45%. The most expensive rate is 5.15%.


Future owners benefit from competition

home loans

What can aspirants to property hope for the start of the new school year? In theory, a rate reduction is possible since the long-term rate on government bonds (OAT), which serves as a benchmark for banks in terms of fixed rates, has been decreasing for several weeks. Fixed at 2.90%, the OAT rate has just returned to its fall 2010 levels when property rates were at their lowest. However, in an economic context that remains tense, it is still unlikely that the banks will pass on this decline in their scales with a single impulse. On the contrary, one can think that there will be no real general decline. Each bank adopting a specific rate policy based on its commercial policy.Very large spreads in rates should therefore be observed from one banking establishment to another, including within the same regional territory.

In such a context, it is more than ever necessary to bring competition into play. For this, the advice of Cream Credit brokers will be invaluable. In addition to quickly finding a lender establishment that meets your expectations, they are in the best position to negotiate your loan on the best terms.

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