Dutch mortgage applications surge as interest rates rise

Dutch mortgage advisors experienced their busiest month in nearly three years in March, driven by a spike in interest rates. According to the Hypotheken Data Netwerk (HDN), advisors rushed to help clients lock in mortgages at relatively low rates before further increases. This surge in activity was especially pronounced among homeowners looking to refinance.

Refinancing saw the largest growth, with applications up 46 percent in the first quarter, reaching over 11,000. This is a stark contrast to early 2022, when more than 21,000 people sought to refinance their mortgages on the same properties amid historically low interest rates.

HDN reported a total of over 53,000 mortgage applications in March, slightly fewer than the nearly 55,000 in April 2022, which also saw pressure from rising interest rates. In the first quarter of this year, 142,000 mortgage applications were filed, a 23 percent increase from the same period last year.

About 20 percent of the applications in the first quarter came from homeowners seeking financing for renovations, making this the largest group of applicants. Additionally, first-time homebuyers in the higher price range showed a notable increase, contributing to an overall market rise of more than 30 percent.

"The increased activity in the mortgage market shows that consumers, alongside their mortgage advisors, are reacting quickly to interest rate changes," said Reinier van der Heijden, director of HDN. "Although one might expect interest rate hikes to reduce applications, they have instead caused a temporary acceleration in the market. Many applications have been pushed forward, and refinancing activity has intensified."

HDN also highlighted a significant trend in the four largest Dutch cities. The market for properties previously owned by investors has seen a substantial rise. In Amsterdam, Rotterdam, The Hague, and Utrecht, the buying market grew by over 35 percent, compared to just 18 percent nationwide.