Mortgage credit: what interest rate in January 2018?
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.