2023-09-01 06:33:21
Baptiste Morin, edited by Ugo Pascolo / Photo credits: AFP
modified to
4:52 p.m., September 01, 2023
Currently, finding the funds to buy a house can quickly turn into a test of strength. And for good reason, the borrowing rates, and in particular the famous wear rate, never ceases to climb. Since this Friday, September 1, banks can lend over 20 years and more up to 5.56%.
This is a situation that we had not seen for more than 10 years. Today, buying the home of your dreams in France can turn into a nightmare, and for good reason: in order to curb inflation, interest rates go up regularly. And since this Friday, September 1, the wear rate of mortgages over 20 years and more can reach 5.56%. In nine months, this maximum interest rate at which banks can lend has increased by two points. This is the consequence of the rise in the average borrowing rate, it now exceeds 3.5%, three times more than two years ago.
“For the first time, we saw a bank posted a wear rate of more than 5% over 25 years, it’s unheard of since 2008,” confirms Sandrine Allonier, spokesperson for the broker Vousfinancez. “The problem we currently have is that even at rates above 4%, the banks are not yet encouraged to lend.”
Waiting to borrow, false good idea?
In this context, the production of loans fell by 40% over one year according to the Banque de France, the French prefer to delay their real estate projects. However, waiting is not necessarily the right option, since “the longer we wait, the more borrowers lose borrowing capacity”, advances the expert.
For a year and a half, the borrowing capacity of a household has already been reduced by 25%, and some see the average rate pass the 5% mark from the beginning of next year.
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