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What are the trends for mortgage rates in April 2024?
In April 2024, the average mortgage rate crossed a significant threshold by falling below 4% for the first time since October 2023. This is a significant decline, but the path to a more sustainable rate of 3% remains a medium-term objective. Economic influences such as the ECB's key interest rates and the inflationary outlook play a key role in the future development of mortgage rates.
How does this drop in interest rates affect real estate purchasing power?
- In December 2021, with a rate of 1.13%, they could acquire a property worth €274,304.
- In December 2022, with a rate of 2.42%, this amount was reduced to €236,168.
- Today, with an interest rate of 3.99%, they can buy a property worth €199,133.
These figures illustrate the direct impact of interest rate changes on real estate purchasing power. Even though rates have been falling recently, compared to the historically low rates of 2021, they remain significantly higher, which reduces buyers' borrowing capacity and could influence their decisions in the real estate market.
What is the situation of the mortgage market?
The mortgage market is showing signs of contraction, with the number of loans granted falling compared to the previous year. This trend underlines a certain reluctance despite attractive rates, marked by a more cautious approach by buyers and banks.
What are the loan criteria in 2024 according to the HCSF?
The conditions for granting credit remain strict, supervised by the HCSF, with a maximum debt ratio of 35% and a limited loan term. These criteria are intended to maintain the stability of the real estate market, even if this may limit access to credit for some households.
Posted on 04/04/2024 by
Cyril POTTIER
Entrepreneur and founder of the agency GABRIEL FRANCE, my career began in the field of accounting, but my passion for real estate led me to this captivating adventure. With GABRIEL FRANCE, we bring our expertise to every stage of real estate, from purchase to sale, including rental management. Through each transaction, our goal is simple: to ensure your satisfaction.
