The value of inquiries for housing loans fell by 31.7% year on year in July 2024, according to the BIK Index of Demand for Housing Loans. That means, in July 2024, banks and lending institutions sent inquiries to BIK for home loans that were 31.7% lower in value compared to July 2023.
In July 2024, 30.63 thousand potential borrowers applied for a housing loan, compared to 43.44 thousand a year earlier, resulting in a nearly 30% decrease. However, compared to June 2024, the number of people applying for a housing loan increased by 11.6%.
The average value of the requested home loan in July 2024 was 435.88 thousand PLN, up 6.2% compared to July 2023. However, it slightly decreased by 1.6% compared to June 2024.
“According to predictions, demand for housing loans has slowed down after the conclusion of last year’s 2% Safe Loan Program. Despite fears, interest in housing loans did not drop to the level before the launch of the Program and is currently about a third lower than in July last year. However, compared to June this year, the number of people applying for a home loan has increased by about 11% – a positive sign. This may be an ‘impatience effect’ from potential beneficiaries of the anticipated new support program for borrowers. These individuals have submitted loan applications on market terms,” says Dr. Waldemar Rogowski, Chief Analyst of BIK Group.
The main reason for the negative BIK Index of Demand for housing loans in July this year was the accumulated demand for housing loans from the first half of the previous year, associated with borrowers waiting for applications in anticipation of the launch of the 2% Safe Loan Program. Hence, a period of high base arises from July last year. Another important factor, partially compensating for the decrease in the value of the Index in July this year caused by a lower number of applicants, is the increase in the average amount of requested credit to 435.88 thousand PLN. This is a sum that is 6.2% higher than in July of the previous year. The increase in loan amounts is favored by an increase in creditworthiness due to real wage growth at a stable interest rate level.
This article first appeared on CEO Magazyn.
Source: https://ceo.com.pl/koniec-goraczki-kredytowej-wysokie-ceny-mieszkan-zniechecaja-polakow-76892
