French mortgage interest rates continue their downward course
Just when you thought French mortgage interest rates couldn’t go any lower, they fell yet again in November.
According to mortgage brokers, the best rates in November could be found in Paris. For a fixed interest loan over 20 years, banks were typically offering a rate of around 2.3% to borrowers with the best profile. However, it was possible to find a lower rate of 2.15% for a fixed rate loan over 20 years.
Rates for loans over 15 years for borrowers with an excellent profile even dipped below the 2% threshold in Paris.
Even for those borrowers with a “standard” profile, banks were offering fixed rate mortgages of 2.65% (not including loan insurance) over 20 years.
In September, the average (i.e. for all borrowers) was around 2.6%. Interest rates stood at an average of 3.1% in December 2013.
Commentators had been saying for some time that this situation couldn’t continue and interest rates would start to rise again this fall. However, some now state that they are not yet detecting the factors that would favor an increase.
It pays to keep an eye on the changing interest rate landscape if you are thinking of taking out a loan to buy a property in Paris.