Mortgage applications dropped by half in February
Netherlands residents applied for half as many mortgages in February as in the same month last year, mortgage adviser De Hypotheker reported. In February 2022, demand for new mortgages reached a record high because many people wanted to refinance their mortgages, given looming interest rate hikes.
Due to rising mortgage rates and a deteriorating economic outlook, house prices have already fallen in recent months compared to the previous month. Banks expect that homes will eventually lose about 6 percent in value.
But De Hypotheker sees that young people, in particular, are now more actively involved in the housing market. Compared to January, the number of mortgage applications rose by 45 percent in February. In addition, more than half of those requests came from people under 35. The average amount per mortgage application increased slightly to just under 311,000 euros.
According to commercial director Menno Luiten, this has to do with the increasing supply after it had become increasingly difficult to find a suitable home for years due to housing shortages. “Although they take into account the still high house prices and higher interest rates, they have often been looking for a suitable home for a long time and are prepared to accept this,” he said.
De Hypotheker, which calls itself the leader in independent mortgage advice, sees the increase in mortgage applications between January and February as a sign of a tentative recovery in the housing market. “But it is still too early to speak of stabilization,” the adviser stressed.
Reporting by ANP