François Villeroy de Galhau, governor of the Bank of France, was the guest of BFMTV-RMC this Tuesday. In particular, he wanted to reassure the French about access to real estate credit.
Yes, the banks want to lend to the French. François Villeroy de Galhau, governor of the Bank of France, wanted to reassure this Tuesday on BFMTV-RMC. Certainly, real estate credit is more expensive today: “When there was not enough inflation, the rates were between 1% and 1.5%, something we had never seen. The French have granted loans massively and it is very logical. Today in day, mortgage rates “We have returned to between 4 and 5%, which are approximately the levels prior to 2015.”
But for the governor of the Bank of France, more expensive credit does not mean more cautious banks.
“There is no reason why the French cannot have a mortgage. The banks continue to provide credit, and we will be very attentive to Bruno Le Maire to ensure that the banks continue to provide credit. The production of real estate loans stabilizes and recovers again . .”
But for this there are two conditions. “The first is the demand of the French. Some of our fellow citizens are waiting to carry out their real estate project. Many real estate projects have been carried out, more than usual, 2 years ago with these very favorable rates. Today, there are quite a few French who expect prices to stabilize or fall, and that should happen,” François Villeroy de Galhau.
“There is a slight misunderstanding”
And he adds: “The second is that banks continue to grant loans. I think so. Furthermore, the production of real estate loans in France has fallen less than in Germany, Italy and Spain. But “all the measures we have taken The measures adopted with the Minister to favor this offer of credits (stabilization of the Livret A rate, monthly increase in the usury rate) must bear fruit.”
The governor assures that “the banks tell us that they continue to grant mortgage loans. There is a small misunderstanding because it is true that the French have the impression that the banks no longer grant loans, but that is not the case. And we will do it.” “Be very careful that this supply of credit continues. Go and ask your banks for a mortgage loan, they are in a position to do it. I think that in general they want to do it. This is not the case.” There is no reason to wait because credit is available. It’s more expensive than before, but it’s not rarer.”
François Villeroy de Galhau concludes: “We determined the ECB rates and we have made the decision to increase them to 4%. We think that it is a good level and that, unless there is a new development, it is more important to be patient from now on.” onwards. You have to take the medicine for long enough. It is a plateau, but I do not comment on the duration of this plateau. “When we get out of the disease, the levels will go down again.”
