Why Mortgage Rates Continue to Fall
In early July, the banks submitted their new interest rate schedules. For the most part, rates have fallen by 15 to 20 basis points, demonstrating the banks’ stated commitment to lending and fostering competition. Only one institution raised its rates because it had already met its sales targets.
Banks are clearly willing to negotiate their interest rates—as well as the insurance associated with loans—for borrowers with strong credit profiles. As a result, there has been no slowdown in lending activity since the dissolution of the National Assembly and following the legislative elections. This is not the case in the real estate market, where a wait-and-see attitude has prevailed in recent weeks as buyers remain hesitant.
Those looking to buy a property should therefore not hesitate to move forward with their plans, given that key indicators suggest that interest rates will continue to fall. In recent days, calm has indeed returned to the financial markets.
After a slight spike, the yield on the 10-year OAT (Obligation Assimilable au Trésor), which sets the benchmark for mortgage rates, has stabilized at around 3.30%. This also presents an opportunity for buyers to negotiate a discount on property prices, given that sellers are willing to make concessions.
