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Mortgages. An increase in the value of inquiries by 45 percent, the average loan amount in May – BIK data

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In May 2024, the value of housing loan inquiries increased by 45 percent year-on-year, the Credit Information Bureau reported. Nearly 27,000 people were interested in the loan, compared to over 22,000 in May last year. The average value of the application was PLN 435,000.

The BIK report “Demand Index for Housing Loans” shows that in May 2024, per business day, banks and credit unions sent inquiries about housing loans for an amount higher by 45.4%. rdr. 26.99 thousand people applied for a loan. potential interested parties, compared to 22.37 thousand in May 2023. Compared to April this year, the number of May applications decreased by 16.6%.

The average value of the requested housing loan was PLN 435.54 thousand. PLN and was higher by 14.8%. than in May last year. In turn, compared to April this year. increased by 0.7 percent

Demand has slowed down by as much as 30-40%.

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According to the main analyst of the BIK group, Waldemar Rogowski, the higher value of applications results from the still rising housing prices, and applying for such loan amounts is supported by an increase in creditworthiness as a result of higher salaries and a stable level of interest rates.

The expert added that the increase in demand for housing loans could be stimulated by the new borrower support program, but its absence will result in the stabilization of the number of applications at around twenty thousand. people. – As expected, the demand for housing loans slowed down after the end of accepting applications under the 2% Safe Credit Program. Currently, it is lower by about 30-40 percent. than in the second half of 2023, but it remains clearly higher (by 30-40%) than in the first half of last year – commented Rogowski. In his opinion, despite concerns, demand has not dropped to the level before the program was launched. He added that an important factor responsible for the value of the current Index reading is the number of applicants, which is higher on an annual basis.

Decrease month-on-month

– Over 20 percent increase in the number of applicants compared to May last year is largely the result of the “freezing” of demand for housing loans at that time as a result of high interest rates and a real decline in wages, so we have the effect of last year's low base, which is partially responsible for the May level of the Index. This effect will have a negative impact on the value of the Index in the following months. Moreover, in May, compared to the month before, there was a 16.6% decrease in the number of people applying for a mortgage loan. – Rogowski pointed out. Safe Credit 2 percent is a government program for subsidizing housing loan installments. The program started on July 1, 2023, and on December 21, 2023, the Ministry of Development and Technology announced the end of accepting applications due to the exhaustion of the planned financial pool. The Ministry informed that approximately 55.8 thousand contracts were concluded. credit agreements.

Main photo source: Shutterstock

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