February 2017: Trend of Mortgage Loan Rates
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Analysis of mortgage rates for the month of February 2017.
For the 3rd consecutive month rates increased by + 0.10 pt on terms of 7 and 10 years old and 0.05 pt on periods of 15 and 20 years (unchanged on 25 and 30). The increase is mainly due to the increase in the interest rate on the financial markets (OAT 10 years), used as a reference for the fixed rates of mortgages.
The outlook for higher inflation also confirms this upward trend
Generally, when the OAT goes up, banks tend to increase their rates in the wake. In February, the OAT 10 years exceeded the 1% mark, it stands today at 1.05% (on 10/02/2017). The outlook for higher inflation also confirms this upward trend.
However, we must remain confident, rates are still at very low levels. As long as the ECB maintains its accommodative policy and does not increase its refinancing rates, the banks will continue to lend.
Last year, the banks achieved a record year with more than 230 billion credits financed.
Pursue a low interest rate policy in order to remain competitive
Banks will continue to pursue a low interest rate policy in order to remain competitive and achieve commercial objectives at least equal to those of 2016.
It is likely that during the year, the rates fall off punctually. We know from experience that the spring is a very dynamic period on the real estate market often associated with a fall in rates. Case to follow!
Small tip: to offset the rate increase, you have to negotiate the borrower insurance and subscribe a delegation of insurance.
2017 Real Estate Rates
March 2017 property rates