Under the effect of the rise in rates, the sum of new borrowings for the month of August fell below 10 billion euros.
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A first in more than seven years. The production of new real estate loans, excluding renegotiation, fell below the 10 billion euro mark in August, the Bank of France announced Thursday, October 5. 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 tide has since turned on this market, after months above 20 billion euros as in October 2020, May, June and July 2021 or even in spring 2022. The volume of real estate loans was then driven by an effect of catching up after periods of confinement for 2020 and 2021 linked to the health crisis and the desire of borrowers in 2022 to take advantage of then attractive rates.
The average interest rate has since increased 3.5 times in the space of 18 months. According to a first estimate from the Banque de France, it is expected in September at 3.81% excluding fees and insurance for new loans excluding renegotiations. This rapid increase is explained by the increase in key rates from central banks to counter inflation. Banking establishments then pass these rates on to their customers.