Mortgage rates keep rising – BFM Immo

Interest rates were, all durations combined, at 1.18% in March, according to figures from the Observatory Crédit Logement CSA. In mid-April, the provisional average rate already reached 1.22%. “Since January, the increase in property rates has increased each month”. The CSA Credit Housing Observatory notes, in fact, that in March, the rates reached 1.18%. At 15 years, they stand at 1.01%, at 20 years 1.13% and at 25 years 1.25%. In mid-April, the provisional average rate even reached 1.22%, an increase of 16 basis points (0.16 percentage points) since December 2021. At the same time, the average duration of loans is lengthening. “It has thus reached levels never observed in the past”, specifies the Observatory. In the 1st quarter of 2022, the average duration of loans granted was 241 months. From 13.6 years in 2001 (163 months), it rose to 20.2 years in March 2022 (242 months). applicants for home ownership and rental investors, a longer term allows access to credit despite the consequences of the rise in housing prices and the impact of the increase in required down payment rates Moreover, the lengthening of the average duration of loans observed since September 2021 (+7 months) has overcompensated for the increase in the rates of loans granted “Between the strict application of the recommendations of the High Council for Financial Stability (HCSF) , the rise in interest rates and the outbreak of the war in Ukraine, the number of loans granted fell by 5.5% this quarter, year-on-year compared to an already deteriorated first quarter of 2021. “On the other hand, the production of credit increased by 2.1%, due to recourse to higher loan amounts, a consequence of a greater personal contribution and the price of housing on the increase”, notes the Observatory.