” In May, the rate hike is negligible with a 1 basis point. The rise is therefore running out of steam “, is one of the main conclusions of the latest edition of the Housing Credit Observatory / CSA.
The average rate has risen very slightly
In concrete terms, the average fixed rate in June was 1.56%, against 1.55% last year . By type of housing, the average rate stands at 1.57% in the old and 1.63% in the new, against respectively 1.56% and 1.63% a month earlier.
Since December 2016, rates have been rising. The strongest increase came in February and since the increases are small , says Credit Housing. The rise is running out of steam. Until then, it resembled that of the summers of 2013 and 2015, both in terms of its size and duration .
Moreover, if one digs a little more in the details, financing company notices reductions of the fixed rates on the duration of borrowing 20 years and 25 years with:
respectively 1.60% and 1.90% in May;
against 1.62% and 1.90% in April.
Attention to real estate prices
Several indicators point to the soaring prices in the stone. financing company is also of this opinion. ” The rise in mortgage rates has no impact on the solvency of demand, but the rapid rise in real estate prices is now weighing on sluggish demand .”
An average loan duration that remains stable
Two hundred and thirteen months, the equivalent of 17.7 years , is the average duration signed by the borrowers. A stable result compared to April. ” The durations are therefore maintained at a high level, despite the decrease observed in March 2017, as is usual towards the end of winter. Overall, the current credit conditions make it easier to achieve long-term accession plans . “
Moreover, the majority of loans are signed over a period of 20-25 years (31%) , ahead of the durations 15-20 years (27.6%) and 25-30 years (25.8%).
What is the average cost?
The relative cost is 4.08 years of revenue in May 2017 , its highest level since the early 2000s. By comparison, the same cost represented 3.93 years of revenue in May 2016.
Production in good shape or almost
In terms of production, the lights are almost green. Year-on-year , the amount of production and the number of bank loans granted rose by 9.4% and 3.3% over one year .
Over 3 months, the variations are less homogeneous (from March to May 2017). If production is up + 3.9% compared to last year in the corresponding period, the number of bank loans granted, it, a decline of 4.3% over the same period.
Housing loan, kézako?
financing company is a surety company that allows real estate buyers to borrow without a mortgage. The principle ? The organization guarantees home loans for the payment of fees. These include:
a bonding commission ;
a payment to the mutual guarantee fund , the amount of which is returned in part to the borrower at the end of the repayment of the loan.
To establish its statistics, financing company relies on more than 16,000 transactions on average. The property guarantees 30% of the entire mortgage market.