For the seventh consecutive month last February, the average rate of a mortgage has oscillated between 1.44 and 1.45% according to the Housing Credit Observatory. This time, it fell to 1.44%. The other constants is that these real interest rates remain negative and that the duration has further increased to reach 230 months.
Sustainably low rates
As we announced to you, the return to the rise in the rates of the mortgage is not for now. They have remained below 1.50% for a year, and have fluctuated by one basis point since last June. If they had started 2019 at 1.45% in January, they are back to their level at the end of 2018 (1.44%). A floor level that seems difficult to break through. However, this is enough to offer negative real interest rates for the ninth consecutive month, which has been unprecedented since 1974.
Home loans approach 20 years on average
In detail, mortgage rates in February 2019 average 1.22% over 15 years , 1.39% over 20 years and 1.63% over 25 years. The overall average can therefore be explained by a continuous increase in the average duration, which is now approaching 20 years. It is precisely 230 months, 19 years and two months, whereas it was only 216 months a year earlier (18 years). The proportion of home loans granted over 20 years is still increasing (almost 72%), while that of loans signed over 15 years continues to melt (8.6% compared to 21.5% in 2014 ).
The rise in prices is felt
Despite the tension over the purchasing power debated during the Great National Debate, the activity of the mortgage market remains dynamic according to the Housing Credit Observatory in February 2019. The amount of loan production increased by 11.5 % between December and February compared to the previous year, while the number of loans granted increased by 2.6% over the same period. These figures are largely explained by the rise in home loans , which force buyers to borrow more. The average relative cost also increased again in February to 4.3 years of income (+0.1 compared to last year).