Real estate loan: interest rates still very low for early 2018
Economic indicators seem to be green again in Europe. France is no exception since the year 2017 was marked by a prolonged decline in the number of unemployed. However, the forecasts of interest rate increases for real estate loans have not proved to be accurate. They remain weak while everything suggests that they should increase.
2017, a prosperous year for the economy in France
Economic growth has made a comeback in France in 2017. These results, which have been favorable for the future, have allowed a recovery of inflation in France at the end of 2017.
As a result, the interest rate market should have been affected by this upward trend. This is not the case, despite a good recovery in 2017, the interest rates of mortgages remain at the lowest.
This is good news for investors who, in addition to benefiting from low interest rates, is benefiting from a booming economy.
The rise in interest rates in the United States decided by the Fed
Unlike the European Centrum Bank which chooses not to pass on the resumption of inflation on the interest rate market, the monetary policy of the FED (Federal Reserve of the United States) is quite different. Thus, in 2017, the FED increased the borrowing rates several times in 2017.
And the monetary policy pursued by this entity will not stop there. Further increases are expected for 2018. Historically, the rise in interest rates in the United States still announces a domino effect for the economies of European countries in a period of 12 to 18 months. Despite these forecasts, caution is warranted given the political uncertainties weighing on US policy.
If all the indicators are green now in the United States, the illogical maneuvers of US President could undermine the growth of the new continent.
A real estate market under an infusion
If interest rates do not rise, it is also because the number of real estate transactions in France remains insufficient compared to expected forecasts. It seems that the real estate market, and a fortiori the old real estate market need support.
In these conditions, we understand that the rate increase is probably not for now but we will come sooner or later. It is, therefore, time to take advantage of low rates to invest in real estate at lower cost.
Real estate credit: how to get the best rate?
How to go about getting the best rate for your mortgage? It’s very simple, just make the right choice of a real estate broker to mandate it to get the best deal on the market.
He is an expert in plan search at the best debtors interest rate for his clients wishing to their real estate project. He is a professional who has real notions of mortgage brokerage.
He is very familiar with the many facets of mortgage lending and works closely with the largest banks in the market. They are its privileged partners in rates and conditions.