"Is it scary to expect a decline in the real estate market by2023?"

Here is the modified text:

Will there be a decrease in real estate prices in 2023? Lending conditions are becoming increasingly complicated due to rising interest rates. However, the volume of real estate sold in 2022 remained quite high, with over a million transactions in the real estate market. Why is the cost of mortgages increasing in 2023? There is an interest rate of about 2.50% (previously 1%) for a 20-year home loan. The decision to continue raising interest rates has not stopped. Starting from the summer of 2024, they will rise to around 4%. 🏢 📈 📉 🏡

✅Example:

A loan of 200,000 euros, to be repaid over 20 years at a gross interest rate of 1% per annum, amounted to 20,749 euros in interest in January 2022. Today, this amount can be increased to 54,353 euros by applying a minimum rate of 2.50%.

The problem of the marginal interest rate

As a result of rising interest rates, the financial burden on the population is increasing. The maximum interest rates set by law could not rise as quickly as the market rates, which has led to restricted access to housing loans. By the end of 2022, more than half of loan rejections were related to the maximum interest rate, regardless of creditworthiness. However, with the upcoming introduction of the maximum interest rate scale for 2023, the situation is expected to improve.

One positive aspect of 2022 is the introduction of the Lemuan law.

He allows borrowers to freely change their insurance to another without prior notice, as was previously required by the Burkin amendment. Since September 1, 2022, people taking out loans can cancel their credit insurance whenever they want. They can replace it with a cheaper contract while maintaining the same favorable terms.

In other words, we see that it is now possible to save thousands of euros. This will help reduce the overall costs of the loan, as set by the annual percentage rate (APR). The surge in changes to loan insurance since September 1 indicates that consumers have become aware of the financial risk associated with the Lemuan law.

Should we be afraid of a real estate crash in 2023? Suggest a home or...