After historic records in May, the trend continues with a further drop in scales this month. As a result of this drop, average rates are currently 1.15% over 15 years, 1.35% over 20 years and 1.55% over 25 years.
According to our barometer, we see several moving mortgage rates:
- 2 mini rates down: the loan rates on 25 and 30 which decrease from 3 to 5 cents.
- 6 declining average rates: credit rates over 7, 10, 15, 20, 25 and 30 years with decreases of between 10 and 20 cents.
Lowest market rates
Never seen ! Banks continue to offer attractive conditions to “all profiles” in order to pursue their strategy of winning new customers. According to our spokesperson Fred Marx , “in a context where mortgage rates are historically low, it is no longer a question of having a premium profile to borrow at the best rate” Some banks even offer to extend the duration of the loan over 30 years. A boon for first-time buyers ”.
For the best profiles, banks are increasing haircuts and offering “mortgage rates of 20 cents lower than their scale according to certain criteria (income, age, etc.)”. Borrowers have understood this and do not hesitate to renegotiate their credit to reduce the cost of it, that is to say, reduce the repayment term and the overall cost of the credit or to reduce the monthly payments and earn in purchasing power.
The three important criteria for credit renegotiation:
- Duration: The borrower must be in his first third of repayment to optimize the impact on the interest still to be paid.
- The difference in rates: between the current credit rate of the loan being repaid and that of the credit taken out. The difference should be 0.70 to 1 point.
- The amount borrowed remaining to be repaid: it must be at least 70,000 USD, below that the banks will consider that the amount is insufficient to buy it back.
What future for mortgage rates?
According to Fred Marx, “the current market is not showing signs of increasing credit rates. It is therefore unlikely that mortgage lending rates will rise suddenly in the coming weeks. We will continue in this positive dynamic at least until this summer ”.