Real estate credit: lessons from Anil in the 3rd quarter
Dumel, the national agency for information on housing, is fully in its role when it comes to scrutinize the evolution of real estate rates. This association, which brings together major players in the housing (government, industry, users), noted a stable relationship at the 3rd quarter with a level of detail that needs to stop.
OAT down, good news
Every three months, Dumel’s Mortgage Rate Indicator unveils a series of figures that provide a precise and comprehensive overview of the market situation. The first data is often forgotten by the other barometers of the kind: the OAT 10 years. Treasury equivalent bonds. These are the securities that finance the states in the long run, and their rates are also rain and shine in terms of auto credit. And the good news is that contrary to predictions, this indicator is down between the 2nd and 3rd quarter 2018: 0.71% (-0.13 point). A factor of increase in less!
A wide variety of rates
Where the barometers of mortgage rates usually offer an average, the Dumel delivers a low range and a high range. This for an immo loan on 15, 20 and 25 years, the three main durations of borrowing in real estate. In Q3 2018, the rate of a mortgage over 15 years ranges between 1.20 and 1.40% in the low range, and 1.60 to 2.25% in range. A significant difference that shows that not all profiles are treated in the same way by the lending institutions according to their project and especially their file, related to their borrower profile. For an amount of € 100,000 over 15 years, monthly payments go from € 637 (for 1.20% excluding insurance) to € 685 (for 2.25% excluding insurance). Over 20 years, mortgage rates stretch from 1.30 to 2.35% over 25 years from 1.58 to 2.45%.
The figures of PAS
The other particularity of Dumel’s mortgage loan rate indicator is to provide the figures for the Social Accession Loan (PAS), an immo loan offering reduced rates for low-income households.. Over 15 years, there is no difference with conventional low-end mortgage rates : it is only at the high end that the data remains more accessible (1.40 to 1.85%). Over 20 years, the figures are concentrated between 1.30 and 2%, while they are between 1.50 and 2.20% over 25 years.