Posted on Dec 3, 2019 2021 at 11:38Updated Dec 3, 2019 2021 at 17:39
It is a machine that runs at full speed. And the banks do not want this to stop. In October, the production of home loans reached 24.5 billion euros, for an annual growth rate of outstandings of 6.4%, a “high level”, says the Banque de France which released those figures on Thursday. The previous month, production stood at 23 billion and growth at 6.6%.
This impressive production of credit is made possible in particular by particularly attractive rates for borrowers: in October, the average interest rate on new loans remained at 1.13%, i.e. just above the floor of 1.00%. 12%, the lowest level ever observed by the Banque de France.
And things are off to a good start for the next month. According to initial estimates made by the Banque de France, the growth rate of mortgage loans, production and interest rates should remain at roughly similar levels.
In other words, despite the entry into force on 1er next January of the new standards of the High Council of Financial Stability concerning the conditions of granting (maximum debt ratio of 35%, loan term capped at 25 years, exemption threshold of 15%), the banks are doing everything to ensure that the credit tap remains open. “Banks are snapping up new customers,” observes a good connoisseur of the market.
The recent warning from the European Central Bank concerning the soaring prices of the real estate market in Europe (+ 7% in the second quarter) and the credit risk that this induces do not worry them either. In the objectives they have set for 2022, most French banks expect a level similar to the production achieved in 2021.
In a recent interview published in “Les Echos”, the president of the French Banking Federation, Nicolas Théry (also president of Crédit Mutuel), thus indicated “do not believe in the overheating of the real estate market” in France, arguing that the market French is “the most secure in the world”.
In any case, the banks’ ambition in terms of production is rather good news for households: to achieve their objectives while respecting the HCSF framework, they will have to remain attractive to customers, in particular by keeping their rates at. floor levels.