Breaking News: Mortgage Applications in the Netherlands Revert to Last Year's Level

Mortgage applications in the Netherlands have returned to levels seen last year, according to a report by De Hypotheker. This recovery follows a significant decline.

Mortgage applications in the Netherlands have returned to levels seen last year, according to a report by De Hypotheker. In the third quarter, the total number of mortgage applications was 1 percent higher compared to the same period in the previous year. This recovery follows a significant 31 percent decline in the second quarter. The mortgage organization sees this as an indication of an ongoing recovery in the housing market.

Breaking News: Mortgage Applications in the Netherlands Revert to Last Year's Level | ogusyis

One notable trend is the increase in applications for home purchases, particularly among first-time homebuyers. In the last quarter, there was a considerable 26 percent increase in applications from homebuyers under 35 years of age. Older age categories experienced a more modest rise. This increasing demand for homes also correlates with a slight increase in house prices. Homes are now being sold above their asking prices and are selling at a faster rate.

With the recovery of the housing market, the average mortgage amount has also seen an increase. The average mortgage amount now stands at 316,000 euros, marking a 2 percent increase compared to the previous year. This is the first annual increase in the average mortgage amount in the past one and a half years. While mortgage interest rates are showing a slight uptick, increased incomes allow people to afford larger loans.

The statistics show that 70 percent of all mortgage applications in the third quarter were intended for home purchases, compared to 62 percent in the same period last year. Despite a tight housing market and the slight rise in mortgage interest rates, more people, especially young homebuyers under 35, are actively participating in the housing market. Their share has risen by six percentage points in just a year, accounting for over half of the mortgage applications for home purchases.

On the other hand, while applications for home purchases are increasing, other types of mortgages are experiencing declines. Applications for home improvements have decreased by 16 percent compared to the previous year. The higher mortgage interest rates are making it more expensive for homeowners to renovate or make their homes more sustainable. Additionally, due to rising interest rates, the market for refinancing remains relatively small, accounting for only 5 percent of the total.

In conclusion, the mortgage market in the Netherlands is showing signs of recovery as the number of mortgage applications returns to levels seen last year. The increase in applications for home purchases, particularly among young homebuyers, indicates a positive trend in the housing market. However, the rising mortgage interest rates have impacted other types of mortgages, leading to declines in applications for home improvements and refinancing.