2023-09-16 18:30:00
Credit rates rose again in August, following the monthly revaluation wear rates. Its effect did not live up to expectations on the level of credit production.
But it more or less stabilized in August, whereas it usually declines in the heart of summer. “The market horizon seems to be brightening,” underlines the CSA/Crédit Logement Observatory. But the recovery will be slow and hesitant, as long as access to credit has not been loosened by the Bank of France. »
An average rate of 3.80% in August
The average rate for real estate loans stood at 3.80% in August, compared to 3.64% in July (i.e. + 0.16 points) and 1.82% in August 2022 (i.e. + 1.98 points).
“Over the first eight months of the year, the increase is almost twice as strong as last year,” notes the CSA/Crédit Logement Observatory. Since December 2022, the average interest rate has increased by 1.45 points across the market.
In August, the average rate stands at 3.72% over 15 years, 3.92% over 20 years and 4.08% over 25 years.
An average loan duration which is stabilizing
The average loan duration remains at 250 months (20 years and 8 months). It has stabilized since last spring, at a level rarely observed in the past (13 years and 6 months in 2001).
“But the increase in loan rates neutralizes the advantage of an extension of duration for most borrowers seeking to reduce their effort rate [ou taux d’endettement limité à 35 %, NDLR], notes the Observatory. The increase in the average loan rate alone has reduced the borrowing capacity of households by 12.7% since December. Concretely, also taking into account the reduced impact of the duration, a household obtaining a loan of €100,000 in December 2022 can only borrow €87,600 in August 2023.”
Credit profitability is recovering
The monthly payment of usury rates has not allowed an increase in credit production due to regular increases in rates from the European Central Bank (ECB) *. However, credit profitability for banks has been slowly recovering since June and activity has rebounded more strongly than usual this summer. In August, the drop in credit production was only 11.6%, compared to 31.5% usually.
But due to the bad month of June, credit production measured on a rolling quarterly level is still falling.
* Which increases the cost at which banks buy the money they lend
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