The French market costs, but mortgage rates grow
Percent on a mortgage grew more than at 10 banks.
According to experts of the international real estate agency, after introduction of a quarantine the amount of real estate transactions dropped by 80%, and then the market just stopped. At the same time credit rates spread up, reports the analytical portal.
The network of the international real estate agencies which contains 900 agencies in France published the sales report for the first quarter 2020. Real estate professionals distinguish in it two not similar periods:
Before introduction of a quarantine (on March 17) the amount of transactions grew by 8% for apartments and for 10% for houses in comparison with the first quarter 2019. The prices grew by 2% and 3% respectively.
After the beginning of a quarantine the number of transactions was reduced by 81% for apartments and for 80% – for houses. At the same time a part of the current sales still could be completed at the end of March. After that, according to the agency, "the market completely stopped" and "now there is no movement of the prices".
Meanwhile notaries are not helped even by permission to certify transactions remotely.
As the international broker network notes, "in three weeks of a quarantine new requests for a mortgage dropped by 72% in comparison with the same period of 2019". This activity is also suspended now, and banks are occupied almost only with promotion of affairs on the current credits. Nevertheless, according to specialists, it is always possible to receive a mortgage, it is necessary to stock up with sufficient patience only.
However interest rates are not frozen. About fifteen banks considerably lifted them in April in the context of decline in demand, the broker network notes: "For one of them growth varies from 0.05% to 0.70% for the worst profiles and in general, and the majority of increases is in range from 0.15% to 0.25%". As a result the average rate increased by 0.05 percent points. However the average levels of rates, according to loan brokers, remain very low: 1.20% for 15 years, 1.40% – for 20 years and 1.60% – for 25 years.
If you wish to purchase the real estate in France, specialists of AWAY REALTY with pleasure will help you.
