"Today, the rate situation is extremely favorable for buyers," summed up Geoffrey Bragadir, founder of the broker Empruntis.com presenting its annual survey. It's almost an understatement as the rate fixed mortgage in 20 years are in free fall: - 1.30 points a year, sometimes more. They stand at 4.10% on average today against 5.40% in October 2008, reducing them to levels in November 2006. In comparison, for a loan of 150,000 euros over 20 years, this decline could save 25,000 euros on the total cost of credit.
The pace was even faster, according to other industry professionals, whose analysis was published recently. According Meilleurtaux, 95% of partner banks have reduced their rates in September, from 0.16% on average. ACE estate goes even further and bet on a further decline by the end of the year, provided that ECB rates remain unchanged. This fall is a real ate oxygen for borrowers who have the opportunity to reduce the duration of their credit. In the second quarter of 2008, it reached nearly 22 years, today it appears to 20 years. Loans for a period exceeding 25 years are the exception. "It must be said that bankers do not want to commit to a horizon too long, even if they have gradually reintroduced credits to 25 or 30 years' analysis Cyril Blesson, economist at Seeds Company, a consulting firm in financial investments .
With fixed rates as low, variable rates are not very attractive, according to simulations conducted by Empruntis.com. For a loan of 200,000 euros, the gain on the total cost of credit by taking the variable can amount to 8446 euros for a loan over 15 years (13,905 in 20 years), but only if the ECB rate to remain 1%. A scenario implausible. If, on the contrary, they increase by 1 point for 10 years before returning to current levels (which is already optimistic), the loss from the fixed rate will be 2.000 euro. Individuals rush they provided in their agency to borrow? Certainly, according to the Bank of France, bankers perceive an improvement in credit demand from the start. Meilleurtaux.com abounds in the same direction: "Applications have increased 30% over the first 15 days of September compared to the previous year. But the downturn was such that in 2008-2009 demand remains weak. According Empruntis.com, the amount of new loans fall to 90 billion euros in 2009 against a peak of 156.7 billion in 2007.
The pace was even faster, according to other industry professionals, whose analysis was published recently. According Meilleurtaux, 95% of partner banks have reduced their rates in September, from 0.16% on average. ACE estate goes even further and bet on a further decline by the end of the year, provided that ECB rates remain unchanged. This fall is a real ate oxygen for borrowers who have the opportunity to reduce the duration of their credit. In the second quarter of 2008, it reached nearly 22 years, today it appears to 20 years. Loans for a period exceeding 25 years are the exception. "It must be said that bankers do not want to commit to a horizon too long, even if they have gradually reintroduced credits to 25 or 30 years' analysis Cyril Blesson, economist at Seeds Company, a consulting firm in financial investments .
With fixed rates as low, variable rates are not very attractive, according to simulations conducted by Empruntis.com. For a loan of 200,000 euros, the gain on the total cost of credit by taking the variable can amount to 8446 euros for a loan over 15 years (13,905 in 20 years), but only if the ECB rate to remain 1%. A scenario implausible. If, on the contrary, they increase by 1 point for 10 years before returning to current levels (which is already optimistic), the loss from the fixed rate will be 2.000 euro. Individuals rush they provided in their agency to borrow? Certainly, according to the Bank of France, bankers perceive an improvement in credit demand from the start. Meilleurtaux.com abounds in the same direction: "Applications have increased 30% over the first 15 days of September compared to the previous year. But the downturn was such that in 2008-2009 demand remains weak. According Empruntis.com, the amount of new loans fall to 90 billion euros in 2009 against a peak of 156.7 billion in 2007.
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