More signs that Dutch housing market is recovering: Mortgage adviser
The Dutch housing market is showing more signs of recovering, De Hypotheker reported. The number of mortgage applications to purchase a home increased by 10 percent in the first quarter of 2023 compared to the previous quarter, Het Financieele Dagblad reports.
When looking at the figures for Q1 2022, it is clear that the housing market is not yet recovered, however. A year ago, mortgage applications were 52 percent higher. The sharp decrease is mainly due to a huge fall in the number of mortgage applications for refinancing, -92 percent.
Refinancing a mortgage - converting a mortgage loan into a new loan with new conditions - was much more attractive when interest rates were low and falling. The current interest rate hikes, implemented to fight high inflation caused by Russia invading Ukraine, make the option much less favorable for consumers.
The number of mortgage applications to buy a home fell 22 percent in the first quarter compared to a year ago. But mortgage applications among young buyers increased 7 percent - remarkable, according to the Hypotheker. Home prices have fallen somewhat in recent months, but not enough to make up for the rising interest rates.