Home loans! the lowest fixed or variable rates

The ECB decision leave its rate unchanged, this is now confirmed. Once again, the European Central Bank kept its main rate to 1%, its lowest level ever. This is great news for borrowers. Anyway!  for those who opt for home loans at variable rates are indeed set on the basis of the rent money in the short term (the rate of the ECB in particular) which bankers add a little something (1.5% to 2.5%).  Since the  mortgages rate have rarely been lower now this applies to fixed rate loans as those with variable rates.

As a result, variable rates are low, There are currently 20 loans at a variable rate of 2.90%, capped at 1% (maximum rate will increase to 3.90% if short rates go back) Private banking side can drop even lower. for private banking clients. These loans have yet little or very little success at present, borrowers preferring the security of fixed rate loans, also historically low, which does not vary during the operation, whatever the market rate developments .

Fixed rates fall further because the news is also very good for borrowers. The cost of money in the long term is also historically low. OAT (comparable Treasury obligations) to ten years, which generally serves as a basis for setting fixed rates for mortgages, has been touching its lowest level in history on May 25 at 2.850%. some banks have reflected this trend on their fixed rates. The best fixed rates on the market today amounted to 3.35% over 15 years, 3.55% over 20 years or 3.65% over 25 years, meilleurtaux.com by specifying that in June. “76% of its partner banks lowered their lending rates by 0.10% on average and up to 0.20% for a few (only 3% of banks have increased their rate from 0.05% when 21 % have maintained the same level) “. Another online broker, loan-direct.com, finds him The decline of the OAT has not been passed on to mortgage rates, which remained stable this month. No doubt the French banks, which are incurred in other countries in the Eurozone, they are reluctant to bring this down on their schedules of rates, because of the volatility in the debt market state.