While the end of the year is conducive to trend analysis and forecasting for the next year, January is traditionally the time to experience the truths outlined a few weeks earlier. In terms of mortgage rates , what can be expected for subscriptions for the best credit rates in 2018?
Property rates: back on 2017 and trend for 2018
Low rate increase in 2017
The lowest real estate rate in history was recorded in October 2016 (1.52% for a loan over 20 years). Since then, the market has increased by a few points to reach 1.75% in June 2017. Then, in the second half of 2017, the rate has come down gradually to close the year around 1.65%.
Moreover, the gap of 0.15 points encountered during the year 2017 leads to few changes for your mortgage. Indeed, on the basis of a loan of 200 000 €, this would affect the monthly payment of 14 € only.
Some stability expected in 2018
Continuing Q4 2017 2018 real rates applied in January all tend to fall – and this, regardless of the loan period.
A downward trend in line with the decisions of the European Central Bank (ECB) , announced last October: in order to lighten its support for the European economy and facilitate access to credit in the euro zone, its rate director will remain close to 0% . As a reminder, it is from this rate that banks build theirs: in other words, the lower it is, the more attractive the subscription to a loan.
Not to mention the positive effects of the Bourquin amendment (annual renegotiation of loan insurance) and the decree limiting the domiciliation of income associated with a 10-year credit.
In summary, only the return of inflation could lead to a rise in property rates for 2018.
2018, a favorable context for real estate loans
In the image of the last two years, 2018 looks very favorable to real estate purchases , with its very attractive rates. As a reminder, in December 2015, the average rate was 2.44% for a loan over 20 years, while it averages, on average, 1.62% in January 2018.
Not to mention the renewal of key features, such as the PTZ (up to 138 000 € without interest) and the PINEL law (up to 6000 euros per year of tax savings).
Note that among the best rates obtained during this first month of 2018 is a record rate of 1.18% over 20 years: a result that could translate a greater conciliation of banking organizations vis-à-vis very good records .
In this buoyant environment, do not forget to call on a real estate broker. Beyond its ability to turn this good rate into excellent, its competition will force the partner banks to evolve theirs according to the reality of the market . Without this expert intermediary, they will not be in a hurry to apply this downward trend, which is mainly beneficial to borrowers.
The network of mortgage brokers Good finance – well established throughout the French territory – is at your disposal to assist you in your efforts.