The number of mortgage applications in April fell by almost half compared to both last year and March 2022, according to data from the Credit Information Bureau (BIK). In April 2022, a total of 28.42 thousand potential borrowers applied for housing loans. This means a decrease of 44.9% on an annual basis and by 46.8% monthly.
Credit Information Bureau (Biuro Informacji Kredytowej) also announced that the average value of the requested housing loan in April amounted to PLN 353.95 thousand. It was higher by 5.7% than in April 2021 and by 3.2% lower than in March 2022.
BIK also disclosed the value of the Demand for Housing Loans Index, which informs about the annual dynamics of the value of applying for housing loans. The reading value for April means that banks and credit unions sent inquiries to BIK for loans for an amount lower by 38.8% compared to April 2021.
“The current index reading is a prediction of a significant cooling down in the housing loan market in the coming quarters”, assesses the main analyst of BIK, Waldemar Rogowski.
According to Rogowski, the April value was negatively affected by two factors – the lower number of applicants than a year ago and the slowdown in the growth of the value of the requested housing loan. Additionally, in March 2022, the average amount of the requested loan was the highest in history. This may mean that the trend has changed, as the average loan applied for in April compared to March this year has fallen by another 3.2%.
Rogowski notes that the April reading is worse than the lowest reading in the first months of the pandemic when it was minus 28.1%. In his opinion, the current mix of negative factors has a greater impact on the housing loan market than the uncertainty in the first months of the pandemic.
“The value of demand for housing loans in the coming months will be mainly influenced by the monetary policy. Further tightening and an increase in interest rates will further reduce the creditworthiness of potential borrowers, and thus significantly weaken the demand for a housing loan”, added the analyst.
Arkadiusz Słomczyński order