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Real estate: towards a reduction in interest rates from June
Interest rates could start as early as June according to Christine Lagarde, the president of the ECB. What impact will this reduction have on the crisis in the real estate sector?
(Franceinfo)
Interest rates could start as early as June according to Christine Lagarde, the president of the ECB. What impact will this reduction have on the crisis in the real estate sector?
Interest rates from the European Central Bank have never been higher. They could finally fall in a few months, according to the governor of the Bank of France. “It seems very likely to me that there will be a first rate cut in the spring”, assured François Villeroy de Galhau. Good news for future owners. A 0.10% reduction in interest rates could allow 10,000 more borrowers to take out a home loan each year.
Record interest rates
Concern remains as high interest rates encourage homeowners to lower the price of their homes for sale. In 2023, for example, real estate prices will fall by 6% in Paris. In the event of too significant a drop, the reverse scenario must be considered. At 4.5%, the European Central Bank’s historic interest rates are currently at their highest level.
