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Mortgage loans tumble amid interest rate hikes

12.09.2022 10:43
August saw some 12 thousand people apply for a loan, compared to almost 43 thousand in the same period last year, according to a report by Poland’s Credit Information Bureau.
Poland has recorded the weakest demand for mortgage loans in 14 years.
Poland has recorded the weakest demand for mortgage loans in 14 years.Shutterstock/Elizaveta Galitckaia

The number of mortgage loan applications sank by 70.9% year-on-year, the agency’s data have shown.

‘Nothing indicates that the demand has reached its lowest point; we still can’t see any signs of a rebound on the horizon,’ commented Professor Waldemar Rogowski, the chief analyst for the Bureau.

He explained that interest rate hikes, strict credit requirements and fears of a recession have crippled the demand for mortgage loans.

At the same time, the accumulated value of the loans plummeted by 72.9%, with the average bank credit sum standing at PLN 336,660 (EUR 71,550, USD 72,800), a decrease by 2.9% compared to August 2021.

Professor Rogowski stressed that this decline might signify that Poles are becoming less creditworthy.

(pjm)

Source: Wprost