Most banks have lowered their lending rates again, with decreases of 0.10 points on average. And the trend could continue in June.
Of the real estate rates falling and a trend that is expected to continue. Vousfinancer noted that in May, most scales are trending downward, by 0.10 points on average. “Only a national bank which had significantly lowered its rates raised them by 0.05 points, while still remaining very well positioned in relation to the competition,” specifies the broker. On average, it is currently possible to borrow at 3.65% over 15 years, 3.85% over 20 years and 4% over 25 years, but the lowest negotiated rates reach 3.4% over 15 years, 3 .5% over 20 years and 3.8% over 25 years.
Julie Bachet, general director of Vousfinancer, recalls that this trend should continue. Indeed, “banks want to offer attractive rates at a crucial time of the year for two reasons: the real estate spring but also the market recovery”. And she adds: “These new rate cuts are very good news, undoubtedly linked to the anticipation of the European Central Bank’s rate cut which should take place in June. This is also why we are currently seeing significant discounts.
Decrease in the number of loan refusals
If professionals in the sector are enthusiastic about the resumption of credit requests and especially the sharp drop in the number of loan refusals (-60% in the 1st quarter of 2024 compared to the 1st quarter of 2023), they are worried about the decision not to reform the High Financial Stability Council (HCSF). Julie Bachet explains: “Reforming the HCSF and leaving banks free to assess the risk in granting their loans, particularly with regard to the remainder of their lives, could have enabled a rebound in the production of credits, particularly on the part of investors and first-time buyers, while of course ensuring that they maintain a reasonable level of debt.
According to the latest data available from the Banque de France, the share of loans that do not comply with HCSF decisions reached 15.9% of credit production in December 2023, up more than 2 points compared to January 2023. For the benefit of investors: 18.5% of loans granted to investors were thus non-compliant with the granting criteria (35% maximum effort rate and 25 years maximum loan duration apart from a few exceptions) in December compared to 13 .6% in May, an increase of 5 points in just 7 months. Banks have the right to deviate from the HCSF rules for up to 20% of their production of real estate loans, but under certain conditions.