Mortgage rates fell again sharply in July and continue to fall in August!
According to a study conducted by the Observatory of financing / Housing Credit, the average interest rate on all mortgages on mortgages is 2.70% at the end of July 2014. This is 7 months that this decline continues, to reach today a record level.
Falling rates continue
For the beginning of August 2014, the record was beaten: an average fixed rate of 2.59% over 20 years This is explained by a decline in rates of 10-year OAT, which serves as a reference for banks. They are following the trend in order to gain customers and thus increase their cash inflow without they really take risks.
Currently, with a good record and a good personal contribution, you can get a mortgage at a rate of 2.10% over 15 years, 2.45% over 20 years and 2.77% over 25 years.
Very lending banks
The banking establishments wish to lend: more than 80% of the mortgage loan application files presented to them by the brokers are accepted. And, if it is still a question of many refusals, it is simply because 50% of the borrowers only address their bank…
As you have understood, to get a good credit, you have to prepare a solid file and solicit several banks to put them in competition. And if you are young and you borrow two, you have access to very attractive rates because you represent less risk for banks.
Is an increase in rates expected?
It is possible, but it is to be thought that rates should remain low until the end of the year. This rise would indeed be more likely for the year 2015. So do not wait, take advantage of this very favorable situation to realize your real estate project!