February 2016 credit rate at the lowest!
For this month of February 2016, mortgage interest rates continue to fall. According to data from the Housing Credit Observatory, there is a clear decline in comparison with mortgage rates in January.
In fact, the average interest rate in February 2016 was 2.08% compared to 2.10% in January, which is well below the historical low of 2015 when the average rate was 2.22%. Here is the trend of mortgage rates for February 2016.
February 2016 real estate credit rate
If mortgage interest rates fall significantly, the demand for loans for the acquisition of real estate is plummeting. This is explained by the policy of banks and credit institutions: the credit conditions required are more restrictive. Generally, banks require any borrower a personal contribution of at least 10% of the price of the real estate purchase. Also, it is common to see financial organizations grant a mortgage to the extent of 80% of the price of the property.
And they advocate a shorter repayment period and a lower debt ratio (30%). The purchaser must therefore finance the agency fees, notary fees, fees by itself. It is therefore important to have sufficient personal input.
A new historical record of mortgage rates
According to brokers, the lowest mortgage rates in February 2016 are 2.05% over a 10 year repayment term, and can reach 2.20% over 30 years. Before selecting a real estate loan offer, it is therefore particularly appropriate to compare real estate loan rates with online brokers. And these specialists are able to negotiate for their clients the lowest rates that can be.
Since January 1, 2016, there has been a marked decline in mortgage rates across all repayment terms. The average decrease recorded is 0.2%. This could continue in this direction for the coming months. However, do not rush to make an investment, as real estate prices are likely to fall in the coming months. For March 2016, borrowing rates should remain stable or fall further.