The slowdown in the decline in mortgage rates continues

Two strategies:

• The least attractive banks want to reposition themselves and therefore make significant efforts (up to 50 basis points for highly sought-after VIP profiles),
• The banks which started the race in the lead at the start of the year, and which are no longer in the leading trio, are repositioning themselves to capture more files in a still sluggish market.

Overall, the declines are between 5 and 50 basis points, with an average of 15 basis points.

But with 3⁄4 of the scales retained for the moment, the reductions observed in the average rates are very measured: 5 basis points over 7, 15, 20 years, and stability of the average rate over 10 and 25 years.

On the best profile side, the minimum rates drop by 10 basis points over 10 and 20 years, 12 basis points over 15 years and remain stable over 7 and 25 years. However, it should be noted that certain banks are ready to make efforts for files that they consider “attractive”. For example, Empruntis has noted discounts in the file which can sometimes go up to 50 basis points... It remains to be seen whether these developments will move the lines during the month of April.

The analysis of Cécile Roquelaure, director of studies

“Overall, if the banks remain voluntary, they are wondering what could revitalize the market. Although there are more property aspirants in the 1st quarter of 2024 (+20% vs. average for the last half of 2023), the momentum is still too measured... And if they want to stimulate the market recovery by giving back purchasing power, they want it to be effective. Lowering your rates, if this does not allow you to win more customers, is not a valid strategy. Since the start of the year, future buyers have already regained purchasing power but the supply remains insufficient and the context is still too uncertain to engage a larger number of households on the market. Credit rates or the supply of goods, what will be the most effective way to revive the market? Not sure that everything is at stake on the financing side! But 2 good news to note:

• The new version of the PTZ, although without the individual house, will provide a small boost;
• The bill from MP Lionel Causse which will be under study concerning the evolution of HCSF standards for which we have been campaigning from the start.

These 2 elements will constitute essential but insufficient additional levers, the supply must be released! » explains Cécile Roquelaure, Director of Empruntis Studies.

Illustrative image of the article via Depositphotos.com.