2023-06-12 09:00:09
Margaux Fodéré / Photo credit: Magali Cohen / Hans Lucas / Hans Lucas via AFP
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3:38 p.m., June 12, 2023
The meeting of the High Council for Financial Stability, this Tuesday, June 13, is expected with some apprehension. The body should say whether it agrees to relax the rules for granting mortgages. The average borrowing rate is currently around 3.5% and it could reach or exceed 4% by the start of the school year in September.
Borrowing capacity is melting like snow in the sun. The meeting of the High Council for Financial Stability, this Tuesday, June 13, is awaited with some apprehension by property buyers. The body should say whether it agrees to relax the rules for granting mortgages. The average borrowing rate is currently around 3.5% and it could reach or exceed 4% by the start of the school year in September. Taking the example of a couple who earn €4,000 net per month, in January of last year this couple had a borrowing capacity over 20 years of €280,000. Today, he could only borrow up to €232,000, according to Meilleurtaux. An unprecedented loss of purchasing power, explains Maël Bernier, spokesperson at Meilleurtaux.
“It means that this couple, they lost 50,000 € of borrowing capacity in a year and a half. We have never seen that since the rates have literally exploded, going from an average of 1.20 to 3.40 today. ‘today,’ she said at the microphone of Europe 1.
“Prices should have fallen by 18%”
Concretely, with average prices at €3,000 per square meter, this couple lost sixteen square meters of potential purchase, the equivalent of one room. “To compensate for this drop, prices would have had to fall by 18%. However, this is absolutely not the case since overall, prices have fallen by 1 to 2%”, added Maël Bernier.
Not enough to discourage the French who want to buy at all costs and who are ready to make concessions on their property. In April, the Banque de France observed a stabilization in mortgage loans signed each month in France. Proof that loan production remains dynamic.
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