Feeling fortunate with Trump's reign if you're eyeing French real estate credit
Potential Impact of Donald Trump on Mortgage Rates in Real Estate Sector: Anticipated Rate Drops?
There's a silver lining to Donald Trump's erratic presidency, especially for those planning to dip into the French real estate market using credit. The chaos across the pond (or the Atlantic, in this case) has instigated some lavish responses from the European Central Bank – responses that could tickle the fancy of property buyers. Let me spell it out for ya.
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The enigmatic Donald Trump, with his controversial remarks and... his dubious impact on real estate credit for the French? The American President certainly knows how to keep markets on their toes. It's a rollercoaster ride for those grappling with uncertainty, but it might just be a lucky break for French families eager to buy a new nest. And here's why. While Trump's decisions stateside are making ripples in global growth, the European Central Bank (ECB) has decided to step up and support the old world as best as it can. And how is it doing so? By tweaking the key interest rate, of course!
As the ECB lowers the interest rate even further, it's all about costs going down, Baby! Commercial banks are now left with more wiggle room to slash their own mortgage rates. Don't forget, Donald Trump is also giving investors the jitters, causing them to look for safer havens. As a result, some are jumping ship and heading to countries like France, lured by lower interest rates on debts, hovering around 3.6% in March. With these lower interest rates, mortgage rates are bound to drop, right? That's what the real estate site BFM immo thinks.
What's the deal with mortgage rates?
Here's the lowdown. According to BFM immo, yes, mortgage rates have indeed dropped again in May, after a hike in April. It's averaging 3% for a 15-year loan, 3.15% for a 20-year loan, and 3.30% for a 25-year loan. But remember, that's just the average. Some borrowers might score even sweeter deals depending on their profiles and the banks they team up with.
Now, who's the perfect borrower in Trump's eye? A couple that's gainfully employed and environmentally conscious. Yup, they can reap the benefits of multiple credit lines designed to lower interest rates. In fact, a lucky few could qualify for rates as low as 1%! If you're checking all those boxes, congrats, you're officially Trump's flavor of the month!
What's next?
Want more tips on financing your real estate venture? We've got you covered! Read our comprehensive guide on how to finance your real estate journey. Whether you're torn between a new or old property, a house or apartment, or pondering over notary fees, we got you covered.
Around this article* Mortgage* real estate purchase* housing* banks
- Despite Trump's questionable influence on real estate credit in America, his presidency could potentially benefit French families looking to invest in real estate, as the European Central Bank has responded to the market volatility by lowering interest rates.
- As a direct result of the European Central Bank's actions, commercial banks have the opportunity to reduce their mortgage rates, making it a potentially attractive option for investors seeking safer havens.
- In May, mortgage rates in France dropped after an increase in April, averaging 3% for a 15-year loan, 3.15% for a 20-year loan, and 3.30% for a 25-year loan – with some borrowers qualifying for even lower rates.
- Environmentally conscious, gainfully employed couples could reap the benefits of numerous credit lines designed to lower mortgage interest rates, with some offers going as low as 1%.
