For the first time in three years, Dutch consumers submitted fewer mortgage applications, according to mortgage advisor De Hypotheker. In the past quarter, the number of applications fell by 3 percent compared to the same period last year. The decline was mainly seen in applications for renovations or sustainability measures.
Commercial Director Mark de Rijke describes the drop in applications for home improvements as “a signal that homeowners, partly due to higher mortgage rates and economic uncertainty, are more hesitant to make major financial decisions”.
Applications for buying a home remained stable. Although the number of applications decreased across most age groups, it almost doubled among people under 25. According to De Hypotheker, young buyers benefit from a broader supply of relatively affordable starter homes, partly due to the sale of former small rental properties. These buyers also often receive financial support from parents, have savings, and typically carry little or no student debt.
In the first quarter of this year, the total number of mortgage applications stabilised. The sharp increases in the average mortgage amount also appear to be levelling off. In the second quarter, the average amount rose by a meagre 1 percent.
De Hypotheker notes significant regional differences. In Utrecht, the average mortgage amount increased by 9 percent, and in Drenthe by 6 percent. In Groningen and Overijssel, however, it fell by 3 percent. According to the organisation, this indicates that the housing market is becoming increasingly regional in character.
@anp | NEWSBRAINPORT
