According to the Housing Credit Observatory / CSA, real estate rates fell in February 2021 to 1.14% on average, but the average duration of loans is significantly longer.
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Real estate rates are trending down
Excluding insurance and the cost of guarantees (deposit, mortgage, etc.), the average rates depending on the duration of the loan amount in February to:
- 1.05% over 15 years
- 1.03% over 20 years
- 1.27% over 25 years
The average rate for a mortgage in February is 1.14%.
In February, the average monthly rate stood at 1.14% gross against 1.17% in January, according to the monthly summary established by the Housing Credit Observatory / CSA.
Unlike January, all groups of borrowers benefit in February from the movement of lower rates, even those who do not present – in terms of their personal contribution and their income levels – the best profiles
An average mortgage loan period that gets longer in February
In February, the average term of mortgage loans is 232 months, a significant increase in duration compared to January (227 months). 250 months for the accession to the new, and 245 months for the accession to the old.
The longer the loan term, the more expensive the credit! Flexible loans allow you to be able, during the life of the contract, to increase your monthly payment to reduce the duration and therefore the overall cost. And in the event of a hard blow, you can also reduce the deadline.
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According to the Observatory, “Despite the weakening observed last January, the duration returned in February to the high levels observed at the end of last summer ».
Deterioration in mortgage lending activity
The implementation of the second containment at the end of 2020 blocked the realization of many real estate projects.
On the new and old market, the market degradation has continued since the start of 2021: thus in February, we recorded -17.9% year-on-year for the number of loans granted, and -13.5% for production.
The modest buyers which had driven the expansion of the market between 2016 and 2019 are now coming up against the constraints of access to credit implemented at the end of 2019, following the recommendations of the HCSF.
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