Rates continue to fall in July, despite RN breakthrough

Capital Video: Real estate credit: rates continue to fall in July, despite the breakthrough of the RN

The breakthrough of the National Rally (RN) in the legislative elections has not cooled the banks. In July, while some are maintaining their mortgage rates, others are continuing the downward trend, according to a press release from the broker Vousfinancer: “To date, the dissolution has had no impact on mortgage rates, which remain as attractive as ever. The scales we have received since June 9 are mostly either stable or trending downward, demonstrating the banks’ continued willingness to lend.”according to Julie Bachet, general manager of Vousfinancer. An observation shared on the social network X by Maël Bernier, spokesperson for the broker Meilleurtaux: “The trend is not towards bullish panic in the banks.”

Borrowers can obtain an average loan over 15 years at 3.50%, at 3.70% over 20 years and finally at 3.90% over 25 years. The reductions therefore amount to an average of 0.05 points over each of these durations, even if some establishments can be more proactive by displaying a reduction of 0.25 points. As proof of their desire to win over customers, banks have also reopened the credit tap, by setting up preferential rate systems for first-time buyers.

No surge in French debt rates

In a very unstable French political context, some analysts feared a surge in borrowing rates for French debt, also called Treasury Bonds (OAT), leading to a surge in mortgage rates. This is not the case for the moment. The French OAT reached 3.285% at the opening on July 1, 2024, a stable level compared to the end of last week. According to François Rimeu, an analyst at Crédit Mutuel Asset Management, it is “in the unlikely state” that the French debt rate drops in the short term.

Already the day after the announcement of the dissolution of the National Assembly, the markets had not shown themselves to be particularly worried. “We will have to wait for the final result of the election, on July 7, to see how the markets and the banks react, and whether the rise in government borrowing rates increases.”says Sandrine Allonier, spokesperson for Vousfinancer.