As interest rates continue to fall (3.6% in August), banks are starting to lend more to buyers. The production of real estate loans jumped 48.6% in August compared to last year, according to the Banque de France.
The market is becoming increasingly favourable for buyers. In its latest report, the Banque de France observes “a clear rebound” of the production of real estate loans. While banks have been granting fewer and fewer real estate loans for about two years, the trend seems to have reversed since last April, when the production of housing loans (excluding renegotiations) reached 8.9 billion euros, compared to 6.9 billion the previous month. A dynamic that is confirmed since the month of July recorded a peak exceeding the 10 billion euro mark. Better still: the number of files financed jumped by 48.6% in August compared to last year, according to the Observatoire crédit logement/CSA.
“Banks wanted to grant more mortgage loans at the beginning of 2024, analyses Caroline Arnould, general director of CAFPI. However, demand was not there because rates were still too high. Banking establishments, behind schedule in their credit production target, are thus starting to finance more real estate projects. All the more so since they anticipate a drop in key rates, dictated by the ECB. The latter could lower the deposit rate – which serves as a basis for the credit conditions applied to banks – by 25 basis points to reach 3.5% this Thursday, September 12. If this drop is enacted, banking institutions will be able to grant loans more easily.
Banks less demanding
In other words, by anticipating this drop in rates and wishing to meet their objective of loans granted, the banks are more flexible and have already revised their requirements. “All banks have tended to lend more since this summer and are open to negotiation, particularly with first-time buyers, whom they are particularly targeting.”adds Caroline Arnould. Some banks may, for example, be less strict about the 20% contribution required or may[…]
- challenges.fr
