Banks and credit unions granted 24.3% less housing loans in terms of numbers in February 2022, the Credit Information Bureau (BIK) reported. In terms of value, there was a decrease by 14.4%.
In the first two months of 2022, compared to the same period last year, housing loans recorded negative dynamics in both terms (-13.8% and -1.8%), the report said.
The average value of a housing loan granted was PLN 345.08 thousand. PLN in February and was higher in annual terms by 13.1%, which roughly corresponds to the average annual dynamics of real estate prices growth.
When analyzing the situation in the individual amount ranges determining the value of the housing loan granted in the period January – February 2022, a large differentiation can be seen. Only loans in the range of over PLN 500 thousand were positive. PLN, in terms of numbers (+ 36.5%) and value (+ 41.4%). In the remaining amount ranges, the dynamics of the number and value of granted housing loans is negative.
“For housing loans, February 2022 was weak. And in numerical terms, even bad, because compared to February 2021, banks granted as much as 24.3%, and by February 2020, 24.6% less housing loans. This is mainly due to the decline in the number of people applying for a housing loan, which we have already observed since April last year. The downward trend in demand for housing loans began even before the beginning of the interest rate hike cycle. own contribution resulted in an increase in the amount of credit taken, and thus some potential borrowers lost their creditworthiness. […] In terms of value, the situation is also not good. February results are lower both compared to February 2021 (-14.4% ) and February 2020 (-9.1%),” said the chief analyst of BIK, Waldemar Rogowski, quoted in the press release.
The housing loan market is also declining in terms of value. It is related to the negative dynamics of loans in all amount ranges, except for high-value loans (PLN 500 thousand). The average value of the loan is also falling compared to January this year. by (-1.5%).
The monthly reading of the Quality Index of the housing loan portfolio in February 2022 was 0.57%. In the last 12 months (from February 2021 to February 2022), the quality of the portfolio has slightly deteriorated, as evidenced by an increase in the Index by (+0.03 percentage points).
Source: BIK and ISBnews
