Mortgage loans: regional borrowing rates remain low.

We already mentioned it at the beginning of the month, mortgage rates have been generally stable for several weeks. The national and regional banks do not display any great innovations.

Regional credit rates do not move

Regional credit rates do not move

Good news, regional real estate rates oscillate between falling and stagnating. We did the math. First, the regional minimum rates (which benefit “premium” borrowers). On 42 mini bank rates (7 regions and 6 durations), we note that:

  • 8 are stable ;

  • 7 loan rates are up a penny. These are all the minimum rates over 15 years (those of the 7 regions) which are increasing and now reach 1.05% everywhere in France;

  • 27 mini credit rates are falling . These reductions are between 2 and 10 cents.

From now on, the minimum rates are :

  • 1.30% over 20 years everywhere in France;

  • 1.60% over 25 years everywhere in France, except in the North region where it is equal to 1.55%.

As for average rates , we have identified that:

  • 15 of them are not moving this month;

  • 27 bank rates are down by 5 or 10 cents.

The durations most requested by borrowers, 15 and 20 years, have average rates that vary slightly between regions. To know :

  • 1.45% over 15 years in the West ; 1.50% in the North, Ile-de-France, Rhône-Alpes-Auvergne and Mediterranean regions. And 1.55% over 15 years in the South-West and East regions;

  • 1.70% over 20 years in Ile-de-France, West and Rhône-Alpes-Auvergne; 1.75% in the Mediterranean and North. And 1.80% in the East and South West.

Borrowing rates that have increased little over the year

Borrowing rates that have increased little over the year

A year ago (November 2016), borrowing rates reached record highs : 0.90% over 15 years in all regions and between 1.08% and 1.10% over 20 years depending on the region. It is clear that mortgage rates have climbed very moderately since we note that there is only twenty cents difference between the minimum rates of 1 year ago and today i.

What impact on credit?

For a loan of $ 100,000 over 15 years:

  • With a rate equal to 0.90% (that of 1 year ago), the monthly payment is $ 594 and the cost of credit $ 6,939 ;

  • With a rate equal to 1.05% (current rate), the monthly payment is $ 601 and the cost of credit is $ 8,125 ;

  • The difference is therefore only $ 7 on the monthly payment and $ 1,186 on the cost of credit.