Further decline in mortgage rates
The wait weighing on the housing market seems to be ending. According to the online broker Meilleurtaux.com, mortgage rates continued to decline in early May in half the banks on all maturities of borrowing. What motivated the request and slightly resolvabiliser ability to purchase real estate buyers. Banking institutions are more likely to not lower their rates on 20 years or less, – point to 0.12 – 0.30 points according to the bank.
Consequently, interest rates have come down to 4% on average over 20 years in April against 4.30% in January, and returned to their levels found in early 2011 and canceling one year of increases. “The mortgage remains a priority for banks. We believe that rates should be very advantageous at least until September, especially since the rate of OAT 10 years, the long-term rates as a reference for determining the rates fixed credit, remains below 3%, “said Herve Hatt, CEO meilleurtaux.com.
In Q1 2012, the number of credit records deposited at the site meilleurtaux.com increased 4% compared to first quarter 2011, with strong regional contrasts: + 15% in Alsace, + 11% in Britain, but – 5% in the Ile-de-France. The buyers are assessing their purchase, but remain cautious on the realization of their real estate projects: the broker notes, however, a decline of nearly 20% of caseload with sales agreement signed or about to be.
“Interest in real estate, safe haven, is still present but with a wait-and context-dependent economy, the presidential election and the hope of lower prices. There is also a more prudent borrowers who are concerned about research funding as early, well before signing a sales agreement, “said Sandrine Allonier, head of economic research meilleurtaux.com. Note that depending on the broker, the number of filings is up 24% over April 2011 when the drop of files with signed sales agreement is more than 12%.