EN
Confirmed rise in interest rates
The average rates charged by banking establishments are progressing regularly and quickly. We have to go back to the end of the last century to witness such a significant and rapid rise in rates. This means the end of a period during which borrowing conditions were exceptionally favourable for buyers.
Endless rise? Unfortunately it doesn’t seem to be over. The prediction for 20-year loans in France, for example, should reach somewhere around 3.5% in 2023! For the youngest among you, known rates in… 2014.
Possibles Consequences :
- A complete reversal of the market and the end of a period: when real estate prices soared with very low interest rates and extremely long loan terms allowing buyers to compensate for the lack of increased purchasing power.
- Some households will be tempted not to buy.
A 0.5 point increase in rates reduces borrowing capacity by 5% in equal monthly payments (Olivier Lendrevie, president of Cafpi).
Contraction of the mortgage market
At the same time, the general decline in various European mortgage markets has accelerated since the beginning of the year. We can even speak of degradation:
- The number of loans granted is decreasing. In France, for example, it was down (on a quarterly basis) 9% at the end of June (year-on-year)
- The amount of loans for the purchase of a home is also falling. Net demand for housing loans fell in 2022 in European countries such as France, Germany, and Italy (except for Spain, where they have increased). Net demand for consumer credit increased in France, Germany, and Italy, and fell in Spain." (The euro area bank lending survey, Second quarter of 2022)
The reasons? Strict application of the recommendations of the HCSF (the French High Council for Financial Stability - a maximum debt ratio of 35%), loans requested while purchasing power is deteriorating, credit conditions are not favourable. Add to this cocktail, the Ukrainian conflict reinforcing inflationary pressures, and the morale of buyers at half-mast.
![](https://nodalview-prod.imgix.net/assets/default/pexels-bongkarn-thanyakij-3740794-1.jpg?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=636&ixlib=php-3.3.1&q=45&usm=20&w=1280&s=3599536a2adcc1b0058c015b13f9d33d 1280w, https://nodalview-prod.imgix.net/assets/default/pexels-bongkarn-thanyakij-3740794-1.jpg?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=509&ixlib=php-3.3.1&q=82&usm=20&w=1024&s=abe4459505aaab7568ec3d8e07c23f8c 1024w, https://nodalview-prod.imgix.net/assets/default/pexels-bongkarn-thanyakij-3740794-1.jpg?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=381&ixlib=php-3.3.1&q=60&w=768&s=5dea4f695daf299c062907388148d92d 768w, https://nodalview-prod.imgix.net/assets/default/pexels-bongkarn-thanyakij-3740794-1.jpg?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=763&ixlib=php-3.3.1&q=45&usm=20&w=1536&s=2281530d07e947df34c2e24108006ff1 1536w, https://nodalview-prod.imgix.net/assets/default/pexels-bongkarn-thanyakij-3740794-1.jpg?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=318&ixlib=php-3.3.1&q=60&w=640&s=f849a30ba9ece6fab892bcf24f97619b 640w, https://nodalview-prod.imgix.net/assets/default/pexels-bongkarn-thanyakij-3740794-1.jpg?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=282&ixlib=php-3.3.1&q=60&w=568&s=50393d0a7b6ca21ea6b900d2aa15118d 568w, https://nodalview-prod.imgix.net/assets/default/pexels-bongkarn-thanyakij-3740794-1.jpg?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=564&ixlib=php-3.3.1&q=45&usm=20&w=1136&s=db9179277053929f70803fe0756bc67f 1136w, https://nodalview-prod.imgix.net/assets/default/pexels-bongkarn-thanyakij-3740794-1.jpg?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=186&ixlib=php-3.3.1&q=60&w=375&s=051deca93c465f8394bd3b174e83aae3 375w, https://nodalview-prod.imgix.net/assets/default/pexels-bongkarn-thanyakij-3740794-1.jpg?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=372&ixlib=php-3.3.1&q=45&w=750&s=e3ebe5572210921b484e18f628ad9156 750w)
Low wear rates
The usury rate was put in place to prevent consumers from getting into more debt than they can handle. The wear rate is the APR that a banker applies when applying for a loan. For a mortgage, it includes: the interest rate obtained by the buyer + the costs (file, brokers, etc.) + compulsory insurance and guarantees.
If the credit APR exceeds the rate of wear, the financing is refused. Today, the rapid rise in interest rates comes up against a low rate of wear and tear, updated only once every 3 months! As a result, the number of files rejected by banking establishments is increasing.
In France, for example, since July 1, usury rates are 2.60% for fixed rate loans of 10 to 20 years, and 2.57% for fixed rate loans of 20 years and more. These amounts could be revised upwards on October 1.
Property prices and sellers' obligations
Faced with this unfavorable economic situation, real estate prices have not yet experienced a turnaround. And this factor is certainly one of the most important in explaining buyers reservations.
For their part, sellers must face new constraints, such as the energy audit of a property.
So what to do? Especially since the increase in the key rates of the European Central Bank indicates a continuation of the rise in credit rates in the coming months. And with a rather saturated real estate market, and exacerbated competition, it is not easy to stand out.
Two essential axes:
- Your presence with prospects to capture current mandates. Develop a relationship of trust by adding a dose of digital prospecting to your strategy. Provide answers to their problems and questions in exchange for their contact details.
- Accompany sellers on their obligations, possible work, and possible financing. Direct them to the right contacts. Highlight your specific offers: virtual tours of the property, floor plans, partnerships with assessors, architects, etc.
To sum up
WHAT'S GOING ON?
The continuous rise in mortgage rates is having a strong impact on the market this fall. Add to that, inflationary pressures, force banks to pay more for refinancing. But also the conditions for obtaining loans have tightened which impacts most borrowers.
WHAT ARE THE POSSIBLE CONSEQUENCES?
A complete reversal of the market and the end of a period when real estate prices soared with very low interest rates and extremely long loan terms allowing buyers to compensate for the lack of increase in their purchasing power. Some households will be tempted not to buy.
HOW TO REACT?
Develop a relationship of trust by adding digital prospecting to your strategy. Provide answers to your prospects' problems and questions in exchange for their contact information. Accompany sellers on their obligations, possible work, and possible financing. Direct them to the right contacts. Highlight your specific offers: a virtual tour of the property, floorplans, etc.
Related articles
![](https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-listings-1.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=960&ixlib=php-3.3.1&q=45&w=1280&s=559b9d97225c3210d32484af0e84c54e 1280w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-listings-1.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=1920&ixlib=php-3.3.1&q=61&w=2560&s=6d7166630baab83deff5daefc4af1c75 2560w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-listings-1.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=768&ixlib=php-3.3.1&q=82&w=1024&s=387202a7ae0bfe88bb94ca6f85f4b413 1024w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-listings-1.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=1536&ixlib=php-3.3.1&q=61&w=2048&s=d21f15620e8bcebc1d30b5e50ca77df8 2048w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-listings-1.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=576&ixlib=php-3.3.1&q=60&w=768&s=15d5d1fd421172f561dcbe606853b2fb 768w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-listings-1.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=1152&ixlib=php-3.3.1&q=45&w=1536&s=5c53c023113048e6cd3a4769c8bcc69d 1536w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-listings-1.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=480&ixlib=php-3.3.1&q=60&w=640&s=efdb5a7862a593b1671ad737f59c2737 640w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-listings-1.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=426&ixlib=php-3.3.1&q=60&w=568&s=42c5c0a733b8e9fb008edc1f97c2392e 568w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-listings-1.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=852&ixlib=php-3.3.1&q=45&w=1136&s=efb082b978a3a3a3ed3fd2cca6305c36 1136w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-listings-1.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=281&ixlib=php-3.3.1&q=60&w=375&s=9a7eaaab842e18175ef30202ebd6bc2a 375w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-listings-1.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=562&ixlib=php-3.3.1&q=45&w=750&s=b6cf2282d0ccbb52829a4ee99d176620 750w)
5 steps to make your listings stand out
![](https://nodalview-prod.imgix.net/assets/default/Thumbnail-Article-ChatGPT-EN.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=960&ixlib=php-3.3.1&q=45&usm=20&w=1280&s=076c07436cbca3288f7c8b6b0c6f0ebc 1280w, https://nodalview-prod.imgix.net/assets/default/Thumbnail-Article-ChatGPT-EN.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=1920&ixlib=php-3.3.1&q=61&usm=20&w=2560&s=21bec262471299ebbb580b44d2dbbbd7 2560w, https://nodalview-prod.imgix.net/assets/default/Thumbnail-Article-ChatGPT-EN.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=768&ixlib=php-3.3.1&q=82&w=1024&s=c4f1c1652e0b0555dd1cfc4077268a1d 1024w, https://nodalview-prod.imgix.net/assets/default/Thumbnail-Article-ChatGPT-EN.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=1536&ixlib=php-3.3.1&q=61&usm=20&w=2048&s=a6078b3b99e6fdb08f6ab366f56ba5b1 2048w, https://nodalview-prod.imgix.net/assets/default/Thumbnail-Article-ChatGPT-EN.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=576&ixlib=php-3.3.1&q=60&w=768&s=a6aa1938f165ffe2ba35afd64cdd2117 768w, https://nodalview-prod.imgix.net/assets/default/Thumbnail-Article-ChatGPT-EN.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=1152&ixlib=php-3.3.1&q=45&usm=20&w=1536&s=f1d1abbfee00dbe3be909b76c3392a5c 1536w, https://nodalview-prod.imgix.net/assets/default/Thumbnail-Article-ChatGPT-EN.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=480&ixlib=php-3.3.1&q=60&w=640&s=c312024f4a2c0edc23188c4270af4771 640w, https://nodalview-prod.imgix.net/assets/default/Thumbnail-Article-ChatGPT-EN.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=426&ixlib=php-3.3.1&q=60&w=568&s=b08f00e806e91b32faf0238d65f13fd9 568w, https://nodalview-prod.imgix.net/assets/default/Thumbnail-Article-ChatGPT-EN.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=852&ixlib=php-3.3.1&q=45&w=1136&s=45942000f79b01e2a418d7df9dbf2945 1136w, https://nodalview-prod.imgix.net/assets/default/Thumbnail-Article-ChatGPT-EN.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=281&ixlib=php-3.3.1&q=60&w=375&s=808b92115fd924de170a7d1a1dfdd428 375w, https://nodalview-prod.imgix.net/assets/default/Thumbnail-Article-ChatGPT-EN.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=562&ixlib=php-3.3.1&q=45&w=750&s=4dda9510aac410a6c57b5d3196b3e0eb 750w)
10 chatGPT prompts you need as a real estate agent
![](https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-How-can-I-use-AI-as-a-real-estate-agent.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=960&ixlib=php-3.3.1&q=45&w=1280&s=5aab447e1ba9c33484a57c0276efff5a 1280w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-How-can-I-use-AI-as-a-real-estate-agent.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=1920&ixlib=php-3.3.1&q=61&w=2560&s=5434cd6259e1acd71df171500dd05a19 2560w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-How-can-I-use-AI-as-a-real-estate-agent.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=768&ixlib=php-3.3.1&q=82&w=1024&s=0365566974537e82d4b6cac150a644f5 1024w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-How-can-I-use-AI-as-a-real-estate-agent.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=1536&ixlib=php-3.3.1&q=61&w=2048&s=54ab15ec6aebea6144bb0dbd95c92249 2048w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-How-can-I-use-AI-as-a-real-estate-agent.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=576&ixlib=php-3.3.1&q=60&w=768&s=9c8aff86deb298f437aa51a050957e0b 768w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-How-can-I-use-AI-as-a-real-estate-agent.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=1152&ixlib=php-3.3.1&q=45&w=1536&s=f3119b1a95368e8faae89e541a579332 1536w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-How-can-I-use-AI-as-a-real-estate-agent.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=480&ixlib=php-3.3.1&q=60&w=640&s=8839056ae1b2f694ab13b7e006d20bc9 640w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-How-can-I-use-AI-as-a-real-estate-agent.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=426&ixlib=php-3.3.1&q=60&w=568&s=cc34550fec9698068311735ff4d79790 568w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-How-can-I-use-AI-as-a-real-estate-agent.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=852&ixlib=php-3.3.1&q=45&w=1136&s=b6979208609461e233ba8651ee21c7e4 1136w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-How-can-I-use-AI-as-a-real-estate-agent.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=281&ixlib=php-3.3.1&q=60&w=375&s=bdbc6a07a0de924835c62038477d10ed 375w, https://nodalview-prod.imgix.net/assets/default/Article-Thumbnail-EN-How-can-I-use-AI-as-a-real-estate-agent.png?auto=format&crop=focalpoint&domain=nodalview-prod.imgix.net&fit=crop&fp-x=0.5&fp-y=0.5&h=562&ixlib=php-3.3.1&q=45&w=750&s=202299a0e66bf6e3dbc5e8a19e088e90 750w)