French financial update: Mortgage rates, financial crisis impact on property prices and Australian comparison
After French mortgage rates were around 5% prior to the financial crisis, rates now are all around 3%*.
On 15 January the European Central Bank cut its benchmark interest rate by 50 basis points to 2%, matching its lowest-ever rate. The cut was the fourth in just over three months. Economists had expected the ECB to take another 50 basis points and said this cut would not likely be the last.
While experts are tipping property prices in France to drop, French insurer Coface believes they will not fall dramatically. Interestingly, as stated in an article in the Australian this month, Coface sees both France and Australia as countries that will make it through this calendar year better than most other countries who will be more significantly impacted by recession. *
* Platine members can view bank interest rates (see statistics) and the Australian article in their Plantine website area.