In 2017, the best mortgage rates rose slightly .
At the end of the year, despite this small increase, the context remains favorable to buyers .
Will the trend continue in 2018 for mortgage rates ?
The time has come to take stock of the past year and then to question what we can expect in the coming months .
Always attractive credits in 2017
The year 2017 was particularly dynamic in the real estate market. Despite a slight rise in interest rates during the first half of the year, buyers remained confident – and the number of transactions did not decrease. For this year, according to , we should count about 910,000 transactions in the old and 130,000 retail sales in the new : these two data have never been higher during this decade !
During the last quarter, further (minimal) declines were observed in real estate rates: 1.56% in September, 1.55% in October, 1.54% in November. Far from being significant, they demonstrate above all a certain stability.
If we are above the historically low rate of November 2016 (1.31%) , the configuration remains profitable. In December 2017, the average market rates are as follows:
- 1.22% over 10 years;
- 1.51% over 15 years;
- 1.72% over 20 years;
- 2.01% over 25 years.
As a reminder, the average rate was 3.08% in 2013: comparing the current situation to that which was current a few years ago, we relativize slight recent increases .
Rising rates in 2018: what impacts for buyers?
The year 2018 will be marked by inflation that will naturally have consequences on the real estate market. Nevertheless, banks have high goals and, to satisfy them, they will have to be aggressive, offering advantageous credits for their customers. Thus, the first months could well remain in the continuity of the end of 2017, under the sign of stability.
Subsequently, a slight increase could occur during the year 2018 . However, buyers should not be discouraged: rates will be higher, without reaching unusually high levels. For example, at the end of the year, some real estate specialists predict a rate of about 2% for 20 years .
Relative stability of mortgage
Finally, all currently known elements suggest a relative stability of mortgage loans in 2018 , with a moderate upward momentum. On the other hand, future buyers must also prepare for the rise in real estate prices . The cost per square meter in the old continues to climb, while changes to some aid in the new could jeopardize some projects.
In the end, according to , the number of real estate transactions in 2018 will probably be lower than the exceptional score of 2017