Housing loans fell sharply, here are the latest data from the MNB

By RockedBuzz 4 Min Read

In May of this year, the average loan cost indicator of housing loans taken out by households decreased, while the amount of new contracts increased in one month. Compared to last May’s data, however, the population took out 68% fewer loans. Almost all of the new housing loan contracts were concluded with fixed interest rates beyond one year households with credit institutions, the average length of interest rate fixing was 138 months – writes the MNB. In the case of personal loans, the average loan cost indicator and the value of new contracts both increased compared to the previous month, but compared to last May, a 14% decrease can be seen in personal loans.

The MNB is another in his recent statement also reports that in May 2023 according to seasonally adjusted data both households and non-financial corporations were net borrowerswhile their deposits decreased during the month.

For residential customers in May, the new contractual amount of the loans granted in connection with the baby support was HUF 18.4 billion. From the beginning of the program to the end of May, such contracts were concluded for a total value of HUF 2,170 billion households with credit institutions.

As a result of transactions, the seasonally adjusted household loan stock increased by HUF 19.1 billion, while without seasonal adjustment it increased by HUF 47.8 billion in May.

The latest data also shows that the average interest rate on HUF deposits of households decreased, while intra-year euro deposits increased in one month, but in both cases an increase can be seen on an annual basis. The value of new contracts increased both for HUF and intra-year euro deposits.

As a result of transactions, household deposits fell by a total of HUF 91.0 billion seasonally adjusted, while without seasonal adjustment by HUF 177.1 billion in May. According to the non-seasonally adjusted data, a net deposit withdrawal of HUF 161.9 billion and HUF 15.3 billion of foreign currency deposits was observed in the month.

Deposits at companies also increased

The average interest rates of forint and euro loans granted to non-financial companies decreased in both value limit categories in the examined month, however, an increase can be seen compared to May 2022. The new contractual value of HUF loans granted to non-financial companies increased both in the categories below and above EUR 1 million. There was an increase in euro loans below EUR 1 million, and a decrease in euro loans above EUR 1 million.

The loan portfolio of non-financial companies – taking into account only the transactions – it showed a seasonally adjusted increase of HUF 267.0 billion, while excluding seasonal effects it showed an increase of HUF 243.4 billion. According to non-seasonally adjusted data, as a result of transactions, the stock of HUF loans increased by HUF 184.4 billion, and the stock of foreign currency loans by HUF 58.9 billion.

With all this the deposit portfolio of non-financial companies according to seasonally adjusted data, it decreased by HUF 72.4 billion, while without filtering out seasonal effects it decreased by HUF 119.9 billion. According to the non-seasonally adjusted data, in the case of HUF deposits, there was a net deposit placement of HUF 4.0 billion, while in the case of foreign currency deposits, a net deposit withdrawal of HUF 123.9 billion was observed in the month.

Cover image source: Getty Images

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