Socialpost

Complete News World

Private demand for housing loans is increasing slightly

Private demand for housing loans is increasing slightly

This may mean that a deep low in the development of demand has been crossed. However, demand for loans from companies fell again in the first quarter of 2024.

Demand for home loans increased slightly in the first quarter of 2024. Banks expect the recovery in demand for home loans to continue in the second quarter. This may mean that a deep low in the development of demand has been crossed. The background to the emerging recovery is now the expectation that interest rates will fall from mid-2024. In addition, real household income is growing due to the rise in health insurance contracts, according to the German National Bank.

However, expansionary developments like those seen in the low interest rate years should not be expected until mid-2022 in the foreseeable future. On the supply side, there have been few changes in the private residential loan business in recent quarters. “Banks’ credit guidelines and credit conditions remained largely unchanged,” the National Bank (OeNB) said.

Demand from companies is falling again

However, demand for loans from businesses fell again in the first quarter of 2024. This continues the downward trend that has been in place since the fourth quarter of 2022. The annual growth rate according to monetary statistics was only moderately positive at 1.6 percent in February 2024, according to calculations OeNB Bank today.

Survey results repeatedly show increasingly negative expectations of risk. “The risk assessment of banks in relation to the general economic situation and the creditworthiness of companies has gradually deteriorated since 2022 and had a corresponding restrictive effect on the credit supply,” the National Bank announced on Tuesday. (Abba)

See also  Exchange of board members for two years at Hofer »Leidersent

Read more about these topics: