News from the market
Mortgages: the rates a little lower
The mortgage rates continue to decline in June, from 0.05% to 0.15%, but not everywhere, and not for all the terms. They should remain stable this summer.
Already historically low interest rates (fixed) of the real estate loans continue to decline in June, but with lower pace and not uniformly, as stated by the online broker empruntis.com. The rate decrease or stabilize, according to the regions concerned and the terms of loans. On the June 28th, fixed rates stand at 3.50% on average over 15 years (against 3.55% on May 19) and 3.70% over 20 years (3.75% May 19). “We are approaching the record low fixed rate for 15 years of 3.40% in October 2005,” explained Geoffrey Bragada, founder of empruntis.com. at a press conference on the June 17th. The downward trend is, however, in its stabilization phase. “The rates are in decline of around 0.05% for loans at 7 and 20 years and are stable for longer periods,” says Mael Bernier, spokesman of Empruntis. Com.
Fixed rates on home mortgages are generally determined based on the rate of government bonds in the long term (OAT 10 or 15 years). OAT of 10 years for example overall is declining. After falling below 3% in May, it remained low at 3.067% at June 29, against 3.66% on March 10 or 4% at its highest rate over the last twelve months (beginning June 2009). It’s a good sign for loans.
The source: Les echos.fr, 30.06.2010, to see the article click here