Real estate credit: lower interest rates in February
Great news for borrowers! According to the broker Pruntisum, the fixed interest rates of real estate loans are clearly starting to fall, a ” first in recent months “.
The movement averages 5 basis points ( -0.05% ) for all durations, from 7 to 30 years. The only exception is the 15-year term, which shows a drop of ten points .
As a result, the 15-year, 20-year and 25-year reference periods are trading at around 3.10% , 3.45% and 3.85% respectively . According to the calculations of the website Pruntisum, this represents for a loan of € 200,000 a gain of € 900 over 15 years, € 2,400 over 20 years and € 2,640 over 25 years.
Interest rates follow OATs
” We clearly observe a relaxation on the fixed rates of loans to individuals following the one that occurred on the OATs ( note: bonds similar to the Treasury, the benchmark index of bank interest rates ), which are now at 2.09% against 2.50% at the beginning of January, “says spokesperson for Pruntisum.
As a result, banks have modeled lower interest rates on OATs, which allows them to ” keep their margins while continuing to offer extremely low rates to individuals “. Added to this is the famous real estate spring – marked by many salons offering promotional rates – and you get average rates that are close to their lowest historical level.
Unattractive variable rates
This improvement does not affect variable rates . The gap between fixed and variable rates is indeed too small for them to be a really attractive alternative for borrowers.
“[Variable rates] should therefore be considered only if this small rate differential is needed to access financing “. For example, for a borrower who is ineligible at 3.45% over 20 years, but who has an interest rate of 3.10% over the same period, is in line with the 33% of indebtedness.
Advice to buyers: “enjoy it !!! “
For future buyers who are reluctant to launch, the online broker does not go through four paths. ” Use it ” is the message addressed to them. Because the current situation may not last according to him. “The current firing window is particularly interesting, but is not intended to be maintained; as we continue to think, credit rates should rise in the second half of 2014 “.