2023-10-05 15:52:36
The production of new housing loans excluding renegotiation fell below 10 billion euros in August, a first in more than 7 years, the Bank of France announced on Thursday. The total amount of new real estate loans for the month of August amounts to 9.9 billion euros, the highest amount since March 2016. The total outstanding amount of real estate loans is starting to plateau, at around 1,300 billion euros. euros. However, it remains four times higher than 20 years ago.
The tide has since turned on this market, after months above 20 billion euros such as in October 2020, May, June and July 2021 or even April and May 2022, driven by a catch-up effect after periods of confinement for 2020 and 2021 and the desire of borrowers in 2022 to benefit from attractive rates before the announced increase.
Good access to credit for first-time buyers
The average interest rate has increased three and a half times in the space of 18 months: it is expected in September at 3.81% excluding fees and insurance for new loans excluding renegotiations, according to a first estimate from the Banque de France. This rapid increase is explained by the policy of central banks to counter inflation, which increases the cost of money for banks, the latter passing it on to their customers to maintain their margins. Banking establishments are therefore less active in this market and potential buyers, hoping for a drop in prices, are also fewer in number, leading to a drop in the number of transactions.
The Banque de France took advantage of this monthly publication to once again affirm the good access of first-time buyers to real estate credit, an angle of attack regularly used by brokers requesting a relaxation of the rules governing this category of loan. According to her, “the share of first-time borrowers using a home loan to acquire a main residence continues to represent around half of loan production in 2023, a proportion slightly higher than the average observed since 2015“. On September 26, the High Financial Stability Council (HCSF), which brings together the Minister of the Economy and the governor of the Bank of France, decided to keep the rules for granting real estate credit unchanged, judging that a Easing would not resolve market difficulties.
#Real #estate #credit #production #lowest #March