Optimism is high on the mortgage credit front. After an unprecedented monetary tightening, marked by 10 consecutive rate hikes, the European Central Bank (ECB) confirmed on September 12 that it was again lowering its main policy rate, the deposit rate, by 0.25 points to encourage banks to lend. At the same time, it lowered its refinancing rate by 0.6 points to 3.65% to allow credit institutions to access liquidity more easily, and therefore lower the cost of their mortgage loan for borrowers.
It took no less for mortgage professionals to express their satisfaction and promise borrowers better days. “This announcement by the ECB suggests a further drop in bank rates and therefore an increase in transactions,” reacted Caroline Arnould, president of the broker Cafpi, in a press release. This improvement should indeed continue because analysts are counting on an identical drop in the ECB’s deposit rate in December, and at least three in 2025.
With most banks anticipating possible monetary movements by the Central Bank, mortgage rates are therefore expected to continue to fall in the coming months. In the coming weeks, further reductions in mortgage rates are already expected: “Some institutions were waiting for confirmation of the ECB’s rate cut on 12 September and should therefore proceed (…)
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