According to the Banque de France, borrowing rates will fall in 2024

Latest Credit Logment/CSA Observatory suggests: Property loan rates fell in January. The average rate is 4.15% compared to 4.23% in December, BFMTV reports. This marks the end of two years of uninterrupted growth.

In detail, a fifteen-year loan can be signed in January with a rate of 3.89%. Over twenty years, it fetches 4% and over twenty-five years, 4.13%. So a downward trend is going on. According to Empruntis, the average rate over twenty years hit 4.05% in February, but the best files can claim 3.75%. But what do property buyers look forward to for the rest of the year?

Decline after stabilization

According to François Villeroy de Galhau, the director of the Banque de France was interviewed Western France Thursday, shoppers can trust. “European Central Bank (ECB) rates have been steady since September. Livret A’s have been there since early 2023 and long rates on financial markets have fallen. So real estate rates should stabilize and then decline during 2024,” the manager told a regional daily.

But François Villeroy de Galhau warns: “Interest rates will not return to exceptionally low levels until 2021, which has led to a sharp rise in property prices”. For the head of the Banque de France, “most likely we will move towards more reasonable rates and prices”. So buyers will be stimulated by falling property prices along with falling lending rates.

Files will have to be checked again

Even if rates are insufficiently low, the head of the Banque de France is counting on “establishing a review process for households with solvent applications” but loans have been refused. So, it is up to the banks to make the effort. The situation should be more favorable towards the end of the year. At the end of 2024, the average rate should reach 3.25%, according to the Credit Logement/CSA Observatory.