Almost 30 percent fewer mortgage applications in 2023 than a year ago

There was a 30 percent decrease in mortgage applications last year compared to 2022. This has been noted by the Mortgage Data Network (HDN). More than 368.000 applications were made, of which more than 236.000 were for purchasing a home. HDN saw a relatively large number of starters enter the housing market.

The sharp decline can mainly be attributed to mortgage applications in the non-buyer market. This concerns, for example, applications for refinancing or additional mortgages, the number of which more than halved in 2023 compared to the previous year. HDN attributes this to the fact that many people, especially in the first quarter of 2022, massively re-subscribed to avoid further interest rate increases.

The number of mortgage applications on the buyers' market was almost 8 percent lower than in 2022. On average, these applications were made for 333.000 euros, 3 percent less than in the previous year. According to HDN director Reinier van der Heijden, this has to do with the "unruly start" of the year. "The housing market was at a low point after the interest rate increases at the end of 2022. During the past year, both the average mortgage amount and the average home value have steadily increased again."

In addition, he sees an annual increase in the number of applications for purchasing a home in the last quarter of 2023. "This indicates that the buyer's market has recovered in 2023," says Van der Heijden.

HDN also speaks of a "good year for starters." Especially for the starter who, according to the data organization, opts for security with a fixed income, a mortgage with NHG, and a relatively cheap home. This group was the largest in the buyers' market, followed by so-called upstream buyers. These are people who buy a new home with a higher market value.

The share of newcomers has become considerably smaller. According to HDN, this is partly due to the number of mortgage applications for new-build homes. That fell by almost a third to just under 15.000 due to fewer building permits being issued. But the share of newcomers who opted for an existing home also fell by 27 percent to almost 46.000.