Credit rate, loan period, amount of personal contribution … Here is what to remember from the figures of the Housing Credit Observatory / CSA for the 4th quarter of 2020 and the month of December.
The rate of new loans fell to 1.20% in the 4th quarter of 2020
Despite the Covid-19 crisis and its macroeconomic and financial consequences, banks have sought to support demand for credits real estate for individuals, in markets weakened by the two successive lockdowns.
The average rate of new credits thus fell to 1.20% in the 4th quarter of 2020, against 1.22% in the 3rd quarter according to theCSA Housing Credit Observatory.
In December, the average rate for the entire market fell to 1.17% against 1.20% in November. This decrease of 3 points in December is due solely to the decline observed in home ownership loans in new buildings (3 points, for 1.24% in December) and on works loans (9 points, for 1.10% in December). In the other market segments, the average rate remained stable.
After a rebound in June, the average rate fell steadily, without returning to its level before the 1st confinement. The development was not identical on all markets, the drop was 5 points for the new home market to 1.22% in December 2020, but 9 points on the old market to 1.19% in December 2020 .
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The duration of mortgage loans was extended by 6 months in the 4th quarter of 2020
In the 4th quarter of 2020, the average duration of loans granted was 233 months, compared to 227 months in the 3rd quarter of 2020.
The average duration has been particularly high since the outbreak of the pandemic. She even lengthened by 6 months during the 4th trimester.
This extension made it possible to absorb the consequences of the rise in the prices of housing and, often, to keep the effort rate below the 33% threshold, in line with the HCSF recommendation.
Since October, the average duration has stood at its highest level ever.
The level of personal contribution jumped to 10.2%
In response to the recommendations of the HCSF, the transfer of clienteles to better-off households continues to be observed with the following indicators in 2020:
- The cost of operations grew twice as fast as in 2019: + 4.6%,
- The income of households carrying out these operations increased: + 2.7%,
- The level of personal contribution jumped: + 10.2%.
From November 2019, the rise in the prices of housing, then the implementation of the HCSF recommendations weighed on the dynamism of the market. With the 1st confinement, the months of March to May 2020 were very disrupted.
The Covid-19 crisis and its consequences weighed heavily on the activity of the credits real estate to individuals. Despite the rebound in demand in June, the market has not returned to the dynamism of 2019. Weakened by the 2nd containment, the 4th quarter confirmed the weakness of demand.
In the end, demand was affected by the economic and social consequences of the health crisis and could only partially recover.
In 2020, the drop in financed operations was the greatest for low-income households, directly impacted by the stricter conditions for access to credit recommended by the HCSF.
• Income <3 minimum wage: – 24% of operations financed (36% of borrowers).
• Income ≥ 5 minimum wage: – 8% of operations financed (28% of borrowers).
• Other households: – 19% of operations financed.
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