News from the market

The historically low interest rates for mortgages are determining the market tendency

The conditions of access to credit, historically good, made creditworthy the households, who could not have afforded it considering the price level.

3.85% over 20 years. The level of historically low interest rates helped to cushion the fall in sales in 2009, bringing the market of buyers that the price levels achieved in 2007 excluded.

“Coupled bending prices earlier this year, lower rates allowed households to obtain a gain in purchasing power of about 22%, “says Laurent Vimont. If this exceptional situation should not last, however, borrowers can still take advantage of it the next year. Firstly, the European Central Bank maintained its present rate unchanged. Even if the conditions shall become harder, Maillart Michel believes that credit will remain attractive, at least until summer 2010. “The banks need to replenish their stocks and individuals will benefit from competition between banks. People who have a contribution will be particularly welcome, “. The next year, the supply of credit should grow from 15 to 20% compared to 2009.

Source: Digest lefigaro.fr, February-March 2010