The BIK Index – Demand for Housing Loans (BIK Index – PKM), which informs about the annual dynamics of the value of requested housing loans, was 18.1% in January. This means that in January 2021, as per business day, banks and credit unions sent BIK inquiries for housing loans for an amount higher by 18.1% compared to January 2020.
In January 2021, a total of 37.46 thousand people applied for a housing loan. potential borrowers, compared to 37.36 thousand. a year earlier – this is an increase of + 0.3%. Compared to December 2020, the number of applicants increased by 11.5%, and compared to the minimum in April 2020, it increased by 34.7%. Average amount of the requested housing loan in January this year. was 306.46 thousand. PLN and was 6.6% higher than in January 2020, it was reported.
“The value of the Index was positively influenced mainly by the increase in the average amount of the loan applied for with practically the same number of applicants. The second factor was the number of working days. This year in January we had five weekends, hence the number of working days was only 19, in the previous year it was 21. In the Index algorithm, we divide the amount of loans requested for the entire month into the number of working days, i.e. the fewer days, the greater the amount per day, and therefore the higher the value of the Index “- said Waldemar Rogowski, chief analyst of the Credit Information Bureau, quoted in the release.
After a series of negative readings from March-August 2020 and November 2020, another high positive reading was recorded. The value of the Index, compared to the reading from December 2020, increased by 11.7 percentage points. Demand in terms of the number of people applying for a housing loan practically recovered to the level from January 2020, i.e. before the pandemic, underlined.
“The increase in the average amount of the requested loan is noteworthy. It reflects the current situation on the housing market, the increase in the average PUM price and the purchase of larger real estate. It should also be remembered that banks loosened the requirements for own contribution (decrease in the required contribution), which translates into accepting a higher value of the LtV ratio Due to the pandemic (on the one hand, a possible third wave in February – March, on the other hand, an increase in the number of vaccinated people), the situation on the mortgage loan market will be dynamic – so it is currently difficult to forecast the demand for housing loans in throughout 2021. Under an optimistic scenario, the demand for housing loans should also be an upward trend, “added Rogowski.
“It should also be remembered that the Index describes only the demand side of the housing loan market and only in terms of value. The value of lending will be determined by the banks’ lending policy, which will determine the level of approval of loan applications. However, it should be remembered that housing loans are processed around 1-2 That is, the impact of January’s sales demand will be visible only in the following months. For the entire year 2021, BIK forecasts the value of lending at the level of PLN 72 billion – i.e. approx. 14% higher than in 2020. ” the analyst concluded.
Source: ISBnews
