Banks and SKOKs sent inquiries for home loans to the Credit Information Bureau (BIK) in April for an amount 16.2% lower than a year earlier, the bureau reported. The number of applications fell by about 26.5% year-on-year to 28,42,000, while on a monthly basis the number fell by 6%.
The average value of a home loan applied for in April this year was PLN 383.36 thousand, up 8.3% from April 2022. Compared to March 2023, it was 2.8% higher, it was reported.
“April’s reading of the BIK Housing Loan Demand Index is still negative and shows that in April this year loan applications were submitted for a value 16.2% lower than a year ago. In interpreting this information, however, it is important to remember that until August 2022, when we recorded the lowest reading of the Index value, it was in a downward trend, which creates a low base for comparisons in 2023. It is the statistical effect of the low base of 2022 that will partly cause the Index value to rise in the following months of this year. It should be noted that the improvement in the value of the Index has already begun in September 2022,” BIK Group Chief Analyst Waldemar Rogowski commented.
He noted, however, that a symptom of a lasting improvement in sentiment toward home loans would only be a positive Index reading, confirming that inquiries for a higher amount were made in a given month than in the same month of the previous year.
“The lowering of the interest rate buffer requirements has resulted in an increase in creditworthiness, which can be seen in the increase in the average amount of credit applied for, which increased by 2.8% compared to March 2023 and is a record amount in the history of the index. In the current market situation, the indicator that best shows the current situation of demand for home loans is the number of applicants. In this aspect, April this year brought, admittedly, a decrease in the number of home loan applicants compared to March this year. (-6%), but with four fewer working days. If we converted the number of applicants per business day, we would have had a 13.7% increase in April in relation to March,” BIK Group’s chief analyst added.
According to him, one can already look at the home loan market with some optimism – especially since it will be given a “steroid in the form of the government’s 2% loan program” in the summer.
Source: BIK and ISBnews
