2023-11-19 05:00:00
According to several sources, it seems that the bank rates are about to stabilize in the coming months around a maximum of 4.50%. For certain specialists, including economist Michel Mouillart, these rates could even start to fall from the beginning of 2024 and reach 2.5% by the end of 2025.
Already opportunities to seize
With banks reopening credit lines, good news could come in the coming months for borrowers. After two years of rising, interest rates should finally start to fall again. It is already possible today to find some good deals by buying cash in old properties, especially for those who are looking carefully among current opportunities.
The big banks, which had deserted the market due to insufficient profitability of mortgage loans, are back. A national bank that has interrupted its lending in recent months has announced a 0.2% reduction in its interest rates. The latter wishes to be present in 2024 and thus aligns its rates with average market rates, according to Pierre Chapon. A additional 0.2% discount is also possible since these are the rates displayed before negotiation.
An opportunity for young borrowers
For young people under 35, this drop in rates can be a real advantage if they earn at least €25,000 per year, or a little more than €2,000 per month. However, “to meet the requirements of a debt ratio below 35%, these young buyers, who rarely have savings and/or a significant down payment, will probably have to sacrifice square meters or move away from city centers” , explains Maël Bernier.
The start of the year therefore seems a little gloomy, even if competition between banks is now stronger. Pierre Chapon does not rule out more frequent and offensive rate reductions between now and spring 2024.
Should you wait to take out your loan?
These welcome reductions for borrowers wishing to carry out a real estate project could create even more hesitation among buyers wishing to obtain the best possible rate. This is a bad idea, because competition between buyers could become stronger when rates fall further and negotiation margins are lower than today, warns the founder of Pretto.
Therefore, you should keep a close eye on changes in mortgage rates while carefully weighing your options before making a decision. The stabilization of short-term rates and the potential future decline nevertheless offer an encouraging outlook for future borrowers and property buyers wishing to benefit from a reduction in credit costs.
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