The value of inquiries for housing loans fell by 16.5% year-on-year in October 2024, according to the BIK Housing Loan Demand Index. The Index’s value indicates that in October 2024, on a daily basis, banks and credit unions sent BIK inquiries about housing loans totaling 16.5% less than in October 2023.
34,520 potential borrowers applied for a housing loan in October 2024, compared to 41,330 a year earlier, resulting in a year-on-year decrease of 16.5%. However, compared to September 2024, the number of people applying for a housing loan increased by 21.1%.
The average value of the requested housing loan in October 2024 was PLN 440,180 and was higher by 4.6% than in October last year. However, it decreased by 1.0% compared to September 2024.
“For another consecutive month, we see a negative readout of the BIK Housing Loan Demand Index. The effect of a low base from the first half of last year has expired. We currently compare the data with the high base of the second half of 2023, stimulated by the Safe Loan 2% program. Therefore, we can expect the continuation of the negative readout of the Loan Demand Index in the coming months of the current year.” said Dr. Waldemar Rogowski, the main analyst of the BIK Group.
He continues: “However, it is worth emphasizing that the October level of the Demand Index should be read with some optimism because despite the currently highest mortgage interest rate in the EU and the second in Europe in Poland and the absence of a support program, the demand for housing loans is on an average level. An important factor influencing the decrease in the current reading of the Demand Index is the smaller number of applicants for a housing loan than in October last year. In October, this number was 16.5% lower compared to October of the previous year, in which applications were already submitted under the program. However, the optimistic forecast is the fact that compared to September, the number of people applying for a housing loan increased by over 20%. Has the market already come to terms with the possible lack of a support program? Another important aspect, which partly compensates for the drop in the Index’s value caused by the decrease in the number of applicants, is the increase in the average amount of the requested loan. In October, it was PLN 440,180 – an amount 4.6% higher than a year ago, but 1% lower than in September. This may be a harbinger of stabilization of prices on the real estate market.”
Source: https://ceo.com.pl/rynek-kredytow-mieszkaniowych-w-pazdzierniku-spadek-popytu-o-165-r-r-ale-wzrost-wnioskow-m-m-39505
