Banks and Credit Unions sent inquiries to the Credit Information Bureau (BIK) for housing loans for an amount lower by 72.9% y / y in August this year, according to the latest BIK Index of Demand for Housing Loans developed by BIK. The number of applicants fell by 70.9% y / y to the lowest level since the beginning of data collection by BIK.
In August 2022, a total of 12.39 thousand potential borrowers applied for a housing loan, compared to 42.54 thousand a year earlier – a decrease by as much as 70.9%. Compared to July 2022, the number of applicants about a home loan decreased by 12.2%, BIK reported.
Average value of the requested housing loan in August this year. was 336.66 thousand. PLN and was lower by 2.8% y / y and by 0.9% compared to July 2022.
“The August reading of the BIK Index of Demand for Housing Loans showed that high interest rates, tightening regulatory requirements and fears of the effects of an economic slowdown or even a possible recession practically froze the demand for housing loans. As I announced in my commentary in July, there is no indication that In order for the demand to reach the lowest level, there are still no signs of a rebound on the horizon,” said the chief analyst of the BIK Group, Waldemar Rogowski.
The August value of the Demand Index is again the lowest in the history of measurement – since January 2008, ie for 14 years.
“The August value of the Index was negatively affected by the number of applicants, which was lower by more than 70% than the year before. It should be remembered that the number of people applying for a housing loan has been regularly decreasing since April 2021, i.e. before the start of the interest rate increase cycle. Until March this year, the negative decline in the number of applicants was mitigated by the growing average value of the loan applied for. For the last 5 months, the average amount of the requested loan has also been decreasing every month, which may indicate that borrowers have lower and lower creditworthiness,” indicated the analyst.
“Unfortunately, I am afraid that in the coming months both the number of applicants and the average amount of the loan applied for will drop further, which will result in another negative record in the value of the BIK Demand Index for housing loans, which will unfortunately translate into the value of lending in the following months. the months of 2022,” Rogowski emphasized.
Source: BIK and ISBnews
