"How Interest Rates Impact Mortgage Loan Demand: Analysis and Trends"

2023-04-27 15:52:44

With the rise in interest rates, demand for mortgage loans fell sharply in the first quarter, both for the purchase of a home and for construction or renovation. The decline, already notable in the second half of last year, should continue.

Article reserved for subscribers

Journalist in the Economy department

By Dominique Berns

Published on 04/27/2023 at 17:52
Reading time: 3 mins

LThe sharp rise in interest rates has put a chill on applicants for mortgage loans. The trend was clear in the second half of last year; it was accentuated at the beginning of the current year.

Thus, according to data collected by the Professional Credit Union (UPC), mortgage loan demand – 68,000 requests for a total amount of just over 12 billion euros, excluding refinancing of an existing loan (with of another intermediary) – shows, in the first quarter, a fall of more than two thirds compared to the corresponding quarter of 2022.

Rates have doubled

It must be said that the rise in the “rent of money” was brutal. Thus, relative to their level at the start of 2022, interest rates have practically doubled.

This article is for subscribers only