Loans for real estate projects: in Occitanie, “there is an effort on the part of the banks, but it is still marginal”

Christine Bardinet, regional director of the Banque de France in Occitanie: “There is an effort on the part of the banks in Occitanie in terms of home loans, but it still remains soft”.

Christine Bardinet, regional director of the Banque de France in Occitanie, confirms the return of banking establishments to the home loan market and the beginning of a reduction in interest rates.
 

The level of housing rates is stabilizing. How to explain it ?

First of all, there is a macroeconomic reason for what we observe. We are in a European framework of rate stabilization. The council of central bank governors has in fact decided not to increase rates any further. This is explained by a drop in inflation. This cessation of rate increases is a strong signal. Then, today, the question is no longer when rates will increase, but when they will fall. There is a debate within the board of governors.

How are banks following this development ?

They are increasingly coming back to home loan offers, because they are confident. They are starting to lower long-term rates. Today they have more favorable market prospects on rates. Furthermore, the return, since the start of the year, to a quarterly and no longer monthly wear rate is a sign that we are re-entering a slightly more normal cycle of evolution of interest rate.

Are rates expected to continue to fall in 2024 ?

Generally yes, if the international situation does not deteriorate. And that inflation, which is not as linear, does not start to rise again.

How do banks behave in Occitanie ?

There is undoubtedly an effort being made, it's still marginal. They are getting back into real estate credit, which was not the case in 2023. They had withdrawn from the market because they were not finding what they were looking for there. We are starting to see downward trends in real estate credit from our banks in the region. It will be gentle, but, I repeat, there is still a marked desire to start with a more substantial offer. Last December, we observed a rather disappointing credit offer. There, we feel a desire, even if we are not there yet.

Have outstanding loans fallen in recent months in Occitanie ?

Not necessarily. Between September 2022 and September 2023, the number of credits granted increased by 3%. They mainly concerned old real estate and home improvement projects. Projects related to new construction are in decline.

Which territories consume the most housing loans ?

On the podium, in Occitanie, we have Ariège in the lead with an increase in credits of 4.4%, ahead of Hérault with +4.2% and Aveyron with +3.9%. This is strong when we know that the national average is +1.3%. What is quite interesting to observe in recent months is that rates have increased, but the prices of goods put up for sale have not decreased. They have even increased in areas like Toulouse or Montpellier. They only fell when the DPE, the energy performance diagnosis, was unfavorable.

I subscribe to read more