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The value of inquiries about home loans increased by 58.5% y/y in February 2024

FINANCEThe value of inquiries about home loans increased by 58.5% y/y in February 2024

The value of the BIK Housing Loan Demand Index increased by 58.5% in February this year. This implies that banks and credit unions sent inquiries about housing loans amounting to 58.5% higher compared to February 2023.

In February 2024, 26.66 thousand potential borrowers applied for a housing loan, compared to 19.02 thousand a year earlier, translating to a year-on-year growth of 40.1%. Compared to January 2024, the number of people applying for housing loans increased by 18.1%.

The average value of the requested housing loan in February 2024 was 427.22 thousand PLN and was higher by 18.8% than in February 2023. Compared to January 2024, it slightly increased by 0.1%.

Potential borrowers submitted loan applications for a value over 58% higher than last year in February 2024.

“The demand for housing loans slowed down after the end of the application period for the Safe Loan 2% Program and is currently lower than in the second half of 2023, yet it remains significantly higher (by 30-40%) than in the months before July of last year,” the report reads.

A significant factor affecting the value of the current reading of the Demand Index is a larger number of people applying for a housing loan, which increased from 19,02 thousand in February 2023 to 26.66 thousand in February 2024. The over 40% increase in the number of applicants compared to February of the previous year is largely the result of the then “freezing” of demand for housing loans due to high interest rates, so there is a low base effect from last year.

The second key aspect determining the level of the Index is an increase in the average amount of the requested loan to 427 thousand PLN – this is an amount that is approximately 19% higher than in February 2023. However, it is 1.8% lower than in December last year. This is the effect of applications without the involvement of the Borrower Support Program. Beneficiaries of the Safe Loan 2% Program applied for and contracted loans for a higher average amount compared to “market” borrowers, explains Sławomir Nosal, Head of the Analysis Team at BIK.

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