are borrowing rates finally starting to decrease?


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Real estate: are borrowing rates finally starting to decrease?

Real estate: are borrowing rates finally starting to decrease? – (France 2)

Article written by

France 2 – C. Rougerie, E. Stervinou, A. Tribouart, E. Martin, G. Liaboeuf

France Televisions

After reaching 4.45% last November, borrowing rates for real estate are falling and are now at 4.05%. Good news for households, who can save tens of thousands of euros.

To buy a house or apartment, it is often necessary to go through a bank. But the rates for a loan were very high at the end of 2023. This year, the situation could improve. A broker who has been supporting his client for several months has just told him good news: he will benefit from a rate of 3.8% over 25 years. An unexpected figure for John Rosenthal, 27, who had put his real estate project on hold for lack of financing.

Banks can finance themselves more easily

“I have already had credit offers of more than 5% from certain banks. Now, it has completely dropped in recent weeks, so it’s a great time to enter the real estate market”, he believes. With this loan at 3.8% rather than 5%, he will save nearly 40,000 euros. The drop in rates reinforces competition between banks to attract new customers. Borrowing rates had risen to 4.45% last November. They are today at 4.05%. Banks themselves can borrow more easily, which has an impact on household credit.

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