As at the beginning of each month, the Credither Guide reviews the latest mortgage rates. Result of the races, no major upheavals in early November on the front of interest rates. The sign that they have reached their floor level?
The mini rates continue to settle
0.90% over 15 years and 1.08% over 20 years, who says better? Never have we seen, in fact, mortgage rates as low. But the current historical levels do not mask some stabilization of market rates, especially the mini rates.
The mini rates? They are awarded to the best records. On borrowing terms 15 and 20 years (the terms of reference), they have not moved for 2 months. Only slight declines are recorded over 7 and 10 years, respectively… of 0.05 and 0.10 points.
Declines still observed on average rates
In average rates, we follow almost the same trend. Some declines have just been recorded as a result of adjustments made by a small number of regional banks that had not yet lowered their rates. Fixed rates over 15 and 20 years are respectively 1.35% and 1.55%, a decrease of 5 cents.
Less haircuts at the end of the year
The fierce competition that banks have been attracting to attract new customers was one of the reasons for the steady declines observed in recent months. Today, institutions are still trying to conquer borrowers, but it is harder for future borrowers to get haircuts in these last days of production.
Why do not banks then raise their interest rates?
Not for fear of missing files, but rather because none wants to be “the first” who will raise its scales. Especially in this decisive period, especially with the preparation of the first quarter and the next elections.
Monthly payments that have dropped considerably
In recent weeks, we talk about stabilization of bank rates, but it should be put into perspective. Such thresholds have never been observed, which mechanically has beneficial effects in terms of monthly payments. For example, compare a 20-year minimum rate in February 2014. It was 2.95%, compared to 1.08% today.
For a loan of € 100,000, this represents a monthly payment of:
|February 2014||June 2015||November 2016|
|Monthly fees||Between € 552.10 and € 582.53||Between € 491.33 and € 522.63||Between € 463.47 and € 484.85|
Compared to February 2014, monthly mortgage payments fell by 17%.