You are not logged in!

You are not logged in!

You are not logged in!

Rising rates, falling credits - Trends-Tendances sur PC

Rising rates, falling credits – Trends-Tendances sur PC

After a particularly intense year 2021, the granting of mortgage loans is leveling off. Rising interest rates create uncertainty in the real estate market.

The number of mortgage loans granted during the third quarter is down 11% compared to 2021, according to statistics from the Professional Credit Union. A first in 2022, after a relatively dynamic first half. A decrease to be put into perspective, however, because the figures remain within particularly high standards. In the third quarter, more than 61,000 mortgage credit contracts were concluded for a total amount of more than 10.5 million…

The number of mortgage loans granted during the third quarter is down 11% compared to 2021, according to statistics from the Professional Credit Union. A first in 2022, after a relatively dynamic first half. A decrease to be put into perspective, however, because the figures remain within particularly high standards. In the third quarter, more than 61,000 mortgage credit agreements were concluded for a total amount of more than 10.5 billion euros (excluding refinancing). This represents a drop of 4.5% compared to the amount granted for the same period of 2021. ÔÇťOverall, fewer loans have been granted, recognizes Ivo Van Bulck, secretary general of the Professional Credit Union. This drop is currently rather limited for purchase and construction loans, while a sharp contraction is being recorded for renovation loans. credits granted during the next quarter.” Because it is there that the signal could appear that the rise in rates is in the process of sowing uncertainty on the real estate market. The decrease in the number of mortgage loan applications is accentuated month after month (- 10%). And has been for 18 months. The decline, which began in July 2021, has now reached levels not seen since 2015. It should materialize in a sharp decline in loans granted in the coming months. Especially since the prospects for the evolution of interest rates are not particularly exciting. Based on figures published by the National Bank of Belgium, rates in August fluctuated between 2.27% (for loans with an initial rate fix period of one year or more than five years up to 10 years) and 2.82% (for loans with an initial rate fix period of more than one year and up to five years). For fixed loans over 20 years, the rates currently vary according to profiles and quotas from 3.30% (quota of less than 80% and high income) to 5.50% (for a quota of 100% and low income) . Rates that remain attractive but are far from the 1% that some could still negotiate at the end of 2021.

.

Leave a Comment

Your email address will not be published.