The value of inquiries for housing loans increased by 421% in December 2023, according to the BIK Housing Loan Demand Index. The value of the Index means that in December 2023, banks and SKOKs (Credit Unions) sent inquiries to BIK for housing loans amounting to a 421% increase compared to December 2022.
In December 2023, 46.34 thousand potential borrowers applied for a housing loan, compared to 12.3 thousand a year earlier, representing an increase of 277% year-on-year. Compared to November 2023, the number of people applying for housing loans increased by 16.4%.
The average value of the requested housing loan in December was 435.27 thousand PLN (the highest in history), and it was 25.1% higher than in December 2022. Compared to November 2023, it increased by 1.3%.
“Potential borrowers submitted loan applications in December 2023 worth more than four times higher than the previous year. The Demand Index reached a historically highest level. Demand for housing loans is record high, influenced by several factors,” says the report.
The first factor is the increased number of individuals applying for housing loans – it rose from 12 thousand in December 2022 to 46 thousand in December 2023 (the highest since March 2022). This is largely a result of the interest in the “2% Loan” program. Among those applying for a housing loan in December, as many as 73% are potential beneficiaries of this program.
The demand for housing loans is also growing among potential borrowers who, for formal reasons, cannot be beneficiaries of the program. Their creditworthiness is improving due to the real increase in wages (above inflation). The WIBOR 3M rate, after rising in November by 0.2 percentage points, remained fairly stable in December and was 1.1 percentage points lower than the end of 2022, which supported lending decisions.
An important factor determining the level of the Index is also the increase in the average amount of the requested loan to a record value of 435 thousand PLN – an amount a quarter higher than in December 2022. “Such a high value of the average requested amount is due both to the increase in property prices and the fact that a large number of people wanting to take advantage of the “2% Loan” program are applying for amounts close to the upper limit of restrictions in this program (500 thousand PLN for singles and 600 thousand PLN for married couples)” explains Sławomir Nosal from the Credit Information Bureau.
