Mortgage applications decline in February, ending growth trend

The number of mortgage applications in the Netherlands decreased in February, marking the end of a recent growth trend, according to data from Hypotheken Data Netwerk (HDN). A total of 41,576 mortgage applications were submitted through HDN’s platform last month, a 1.8 percent drop compared to February 2024.

Since October 2023, the mortgage market had been experiencing steady growth. The sharpest increase occurred in October 2024, when applications surged by 50 percent compared to the previous year. Growth then slowed to 40 percent in November and nearly 30 percent in December. In January, the market expanded by 28 percent, driven by anticipated interest rate hikes from mortgage lenders. However, February’s decline signals the first slowdown in months.

The number of mortgage applications for newly built homes declined by 4.6 percent in February, totaling 5,446 applications. These made up just over 13 percent of all mortgage applications submitted last month.

While total applications decreased, more mortgages were requested for home purchases compared to refinancing or increasing an existing mortgage. In February, 23,702 applications were for purchasing a home, while 17,874 were for refinancing or raising an existing loan.

Homebuyers are taking on larger mortgages. The average mortgage amount reached 366,553 euros in February, a 4.3 percent increase from the previous year. The average market value of homes also rose by 6.6 percent compared to February 2024, reaching 501,228 euros. Despite this increase, HDN notes that market values have now returned to the levels seen in September 2024.