Codacons: real estate loans, rates falling in April 2024. But the real estate market is still affected by the high down payment | SimplyBiz News

After two years of steady increases, mortgage rates began to fall, so much so that those who had taken out a fixed rate loan in April took them out with a APR (Annual effective rate) between 2.7% and 2.8%, a marked drop compared to the average of 3.7% in November 2023. This was reported by the Codacons, which calculated that this equates to a lower monthly payment, with a saving of around 45 euros per month for a 100,000 euro mortgage over 30 years and 67 euros per month for a 140,000 euro loan over 25 years. On an annual basis, the lowest expense will be 540 euros in the first case, compared to 804 euros in the second.

The consumer association also analyzed the evolution of variable rates. “Today, the best offer on the market for a loan of 100,000 euros over 30 years has an APR of 4.62% compared to 4.91% in November, and a monthly payment of 496 euros compared to almost 513 euros ago. four months, a saving of 16.8 euros per month. For a property loan of 140,000 euros over 25 years, the APR goes from 4.95% in November to 4.65% in April, with a lower cost of more than 22 euros per maturity. For the same amount, but with a loan over thirty years, the APR goes from 4.94% to 4.64%, i.e. a lower monthly payment of 23.68 euros, and an annual saving of around 284 euros.”, according to the examination of Codacons.

These are small positive signs which, however, “are not enough to close the gap determined by the sharp rise in rates recorded between 2022 and 2023 due to the continued increases imposed by the ECB, with impacts that for certain types of mortgage loans have reached a higher expense of up to at +5 thousand euros per year compared to the rates in force at the end of 2021 – adds the Association -. The consequences of this high deadline have been disastrous both in terms of real estate and credit: last year, nearly 710,000 homes were sold in our country, a drop of 9.5% compared to 2022. .“.

The total share of homes purchased through financing was just over 36%, the historic low and the center of risk Crif recorded a 24% drop in home loan applications and a 24% drop in disbursements for 2023.”The stock of real estate loans thus decreased in our country from 426.2 to 423.5 billion euros, or 2.7 billion euros less, with indirect negative effects on the construction, furnishings and furnishings.», concludes the Codacons.

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