New mortgage data. The Polish result is still “scared” against the background of the EU
The average interest rate on new housing loans in Poland has recently dropped. Does Poland still belong to countries with the most expensive mortgages in the European Union? Experts from the RynekPierwotny.pl portal looked at this.
Data from Big Data RynekPierwotny.pl in cooperation with FLTR show that from May this year people who choose periodically permanent interest rates on new housing loans can count on average rates closer to 6.00 percent. than 7.00 percent This is the result of recent changes in monetary policy.
However, the situation on the credit market does not change only in Poland. Experts of the RynekPierwotny.pl portal decided to see if in June new Polish housing loans were still the most expensive in the EU. It turns out that June data bring more optimistic information than previous statements.
Interest rate of loans – Poland has left the position of the infamous leader in the EU
As experts emphasize, the analysis of June data on the average interest rate on mortgages in the EU required waiting for the statistics of the European Central Bank until the beginning of August.
– However, even before the analysis of June data, it is worth recalling that they present the average interest rate on all new housing loans granted in the currency of a given country (i.e. completely new contracts and usually not very numerous renegotiations of credit conditions) – says Andrzej Prajsnar, expert of the RynekPierwotny.pl portal.
The expert indicates that in June this year. There has been an important change for the Polish housing loan market. For the first time since March 2024, Poland did not have the highest average interest rate on new mortgages in the EU. The June result for our country was 6.80 percent, which is a lower value than Hungarian 6.94 percent. From 2022, Poland and Hungary regularly exchanged the position of the infamous leader in the European Union in terms of the highest average interest rate of new housing loans.
Credit interest rate – the Polish result still “scares” against the background of the EU
According to the expert, despite improving the situation, new housing loans from Poland are still very expensive against the background of most European Union countries.
– It is enough to compare the June result for Poland (6.80 percent) and euro zones (3.29 percent) – not to mention such countries as, for example, Spain (2.68 percent), Finland (2.74 percent) and France (3.00 percent). The latest data of the European Central Bank confirms that the results of three countries – Poland, Hungary and Romania – pointed out to the rest of the community – indicates Andrzej Prajsnar.
He emphasizes that it should be taken into account the fact that each country has its mortgage specificity, which affects the information presented in the table below.
-Among other things, the dominant interest rate variant in the case of the sale of new housing loans (e.g. variable interest rates, fixed interest rates for 1 to 5 years, fixed interest rate for 5-10 years). An interesting situation certainly concerns Bulgaria, where we see a strong connection of the interest rate on housing loans and very low rates offered as part of deposits – he says.
Expert: “China, USA and India are a weak reference point”
When discussing the July economic situation, the president of the National Bank of Poland (NBP) presented real interest rates from a wider group of states (including Brazil, South Africa, Australia, Mexico, India, China and the USA). Glapiński pointed out that, having regard to global data, the claim that Poland is very exaggerated to the most expensive loans.
Meanwhile, as the expert notes, the adoption of such a position raises the basic question whether in the case of the interest rate on housing loans an equally wide point of view is indicated at all.
– Of course, you can compare the cost of housing loans in an even wider group of countries than just EU countries, but then the specificity of local markets will be more important. What is it about? An example would be a USA unique in a globe scale, where mortgage loans with a fixed rate set for 30 years are very popular. In the case of a wider group of countries, you must also take into account the greater differentiation of the level of inflation and loan repayment – says Prajsnar.
