Credits with a fixed annual percentage rate
As expected in our last article at the beginning of the year on personal credit financing in 2018, the trend has remained stable in terms of interest rates, they are still low.
Consumer credit rates have remained stable at extremely low levels as we still find consumption credits with a fixed annual percentage rate of charge of 0.9%.
Mortgage loan rates continued to fall during the first half of the year, but very slightly compared to last year, up to around 0.9% over 15 years, as competition among credit institutions is also important drop factor. This last quarter saw real estate transactions fall in volume, proof that the rate cut has slowed down, depriving buyers of additional purchasing power.
Observe significant differences in rates
For this end of the year, apart from an exceptional economic or political event that would change the game, it is unlikely that we observe significant differences in rates by the end of the year. However for 2019 the situation is changing with the multiple statements of the Capital lender which in the wake of his sister the Federal Reserve (the Fed) will reduce its bond buyback operations on the markets which mechanically should slowly raise interest rates. Given the unparalleled extent of the operations implemented by the Capital lender since the 2008 crisis, it is difficult to forecast the magnitude of future rate hikes, but mathematically the forthcoming rise is inevitable. Moreover on the other side of the Atlantic rate increases have followed each other since 2016, with a slight acceleration in recent times due to an increase in inflation. To this must be added multiple international uncertainties, be it the armed conflicts or the import tax war of US President, the latter event will if it really materializes to favor inflation and consequent share d other rate increases.
To conclude this brief overview of the personal credit financing situation, we can reasonably expect stability in supply by the end of the year and the beginning of next year. on the other hand, the outcome is more uncertain and a rate hike will be much more likely given the elements of the current economic situation.