ANALYSIS – The cost of credit has jumped for buyers, which weakens their projects. The boom years are over.
It’s a cold shower for the thousands of French people who have a real estate project. In the wake of galloping inflation and a tightening of monetary policies, the banks suddenly raised their interest rates. Some, up to +0.7% in a few weeks. From now on, borrowing under 1% is only reserved for a few happy few. Brokers are forced to pick up their phones. “We call back our customers to tell them that the rate announced during the assembly of the file no longer holds., says Sandrine Allonier, spokesperson for the broker Vousfinancer. This is what happened to Camille, who saw her proposal go from 0.92% to 1.30% in a few days for a 25-year loan. The cost of financing the 3-room apartment he covets has jumped by 15,000 euros. “It’s huge“, laments the thirty-something.
However, the rise in rate fever is only in its infancy. The evolution of real estate loans follows that of 10-year government bonds. However, the rate of these bonds, negative…