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Tl;dr
- Real estate rates continue to fall.
- This decline does not stimulate the recovery of the real estate market.
- The decline in rates is expected to slow in the coming months.
According to the Crédit Logement CSA observatory, real estate rates continue their decline. In October, the average rate was 3.46%, compared to 3.45% in September and 4.20% in December 2023. The analysis reveals a decline of 74 basis points since December 2023 across the market.
Declining rates over different durations
The study also details the average rates obtained by borrowers over different loan durations:
- Over 15 years, the average rate in October was 3.34%
- Over 20 years, it reached 3.39%
- And over 25 years, it amounted to 3.45%
Last December, these rates were 4.11%, 4.26% and 4.35% respectively.
A precarious situation despite low rates
However, despite this decline, access to the market remains difficult. The observatory notes that personal contribution is often not sufficient for households, even the most well-off, in the face of increasing real estate prices. Consequently, the level of personal contribution required always has a powerful depressing effect on demand.
A drop in rates which should slow down
According to Maël Bernier, spokesperson for Meilleurtaux, the fall in rates should slow down in the coming months. 10-year OATs, the long rates on which real estate loan rates are based, are no longer falling. Banks could therefore reduce their margin to attract real estate loan files, which could lead to a slight drop in rates.
Editorial opinion
While falling property rates may seem like good news to potential borrowers, it’s important to keep in mind that the property market remains difficult to access.
The wealthiest households are often the only ones to benefit from these low rates, while those with lower personal contributions may still encounter obstacles in obtaining a loan. It is therefore essential, more than ever, to properly prepare your real estate project before launching.
