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Housing loans – December 2022. Demand for mortgage loans down sharply – BIK data

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In December 2022, a total of 12.3 thousand potential borrowers applied for a mortgage. This means a decrease by about 63 percent compared to the same period a year ago, according to the data of the Credit Information Bureau (BIK). The result is also worse than in November.

In December 2021, 33.16 thousand applied for a mortgage loan. potential borrowers. Now their number has fallen to 12.3 thousand. This is also a result of 9.6 percent. worse than in November last year.

The latest data shows that in December 2022, on a business day basis, banks and credit unions sent inquiries to BIK for housing loans for an amount lower by 60.7 percent. compared to December 2021.

The average value of the housing loan applied for last month was PLN 347.62 thousand. PLN and was lower by 3.3 percent. compared to the value from December 2021. However, compared to November 2022, it was 3% higher.

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Read more: Housing price increases under the microscope>>>

Few people interested in housing loans

“(…) in December 2022, we returned to the decrease in the number of applicants in both y/rim/m terms, with a slight increase in the average loan amount applied for. Still high interest ratestightening of regulatory requirements and fears of the effects of the economic slowdown limit the demand for housing loans,” said Prof. Waldemar Rogowski, chief analyst of the BIK Group, quoted in the release.

As noted, the number of applicants was one of the lowest since January 2007, i.e. in 16 yearssince BIK analyzes the number of people applying for a housing loan. “So the negative scenario is still valid, with a small number of people applying for a loan” – stressed Rogowski.

“For the trend to change, it is necessary to significantly increase the creditworthiness, which depends on four factors: interest rates, wages, real estate prices and living costs. At the moment, the most probable is a decrease in real estate prices, while wages in real terms are falling from the summer of 2022, interest rates are unlikely to be lowered in the coming year, and the cost of living of households, even if they fall inflationthey will only grow less,” the analyst noted.

In his opinion, “in the coming quarters it is possible to reduce real estate prices both in primary marketand secondary loans, but they will not be significant enough to significantly increase the demand for housing loans in the coming quarters.

Main photo source: Shutterstock/ Photocon

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