Value of inquiries for Polish housing loans fell by 68.7% y / y in September

Banks and credit unions sent inquiries to the Credit Information Bureau (BIK) in September for housing loans for an amount lower by 68.7% than a year earlier, the Bureau said. The number of applications decreased by 67.6% y / y, while in monthly terms it increased for the first time in 6 months (by 9.6%).

In September 2022, a total of 13.58 thousand potential borrowers applied for a housing loan, compared to 41.94 thousand a year earlier - a decrease by 67.6%. Compared to August 2022, the number of people applying for home loan, however, increased by 9.6%, it was announced.

Average value of the requested housing loan in September this year. amounted to 337.82 thousand. PLN and was lower by 3.4% y / y, but by 0.3% higher compared to August this year.

"The September reading of the BIK Index of the Demand for Housing Loans confirms that high interest rates, the tightening of regulatory requirements and fears of the effects of the economic slowdown and even a possible recession have effectively frozen the demand for housing loans. In September, however, we note the first signs of 'life'. by August this year both components on the basis of which the Index is calculated changed, i.e. the number of applicants and the average amount of the loan applied for increased. Of course, compared to September last year, the drops are still high," said Waldemar Rogowski, the main analyst of the BIK Group.

He added that the September value of the Index, despite the fact that it is not the lowest, is one of the lowest in the 14-year history of measurement.

"The September value of the Index was negatively affected by the number of applicants, which was lower by almost 68% than a year ago. This is the second lowest result since January 2007, i.e. in 15 years, since BIK analyzes the number of applicants. However, there was a small light in the tunnel. The number of applicants has increased in the last 6 months on a m / m basis. This may be partly due to the increase in the number of co-borrowers applying for the same loan in order to increase their creditworthiness. This phenomenon will be monitored at the level of granted loans," indicated the analyst.

Also positive is the fact that the average loan requested increased slightly in September after 6 months of decline, he added.

"Two swallows do not make spring, the more so because we are fast approaching winter. We will see what will happen in the coming months. A negative scenario is still possible, in which both the number of applicants and the average amount of the loan applied for will drop. So both scenarios are still in the game," summed up Rogowski.

Source: BIK and ISBnews