Promising Future for Mortgage Market in Poland

The pandemic years of 2020-2021 saw almost zero interest rates, allowing for high creditworthiness. In fact, with wages rising at a rapid pace, it reached record levels. Although this was later followed by an inflationary hangover, at the time, borrowers were satisfied and mortgage sales were setting new records.

This mortgage boom came to an end in the autumn of 2021, when the National Bank of Poland, like other central banks around the world, began raising interest rates. Combined with tightened lending conditions, this led to a sharp decline in mortgage sales, reaching the lowest levels in two decades.

Extreme emotions in the mortgage market

The situation started to improve in the spring of 2023, when market interest rates began to decrease, financial oversight relaxed lending conditions (the minimum interest rate buffer was reduced), and rapidly increasing wages continued. All of this increased creditworthiness and brought about a thaw in the mortgage market.

Promising Recovery of the Mortgage Market in Poland

The mortgage market in Poland is witnessing a promising recovery after facing challenges in recent years. With interest rates hitting record lows in the pandemic years of 2020-2021, borrowers enjoyed high creditworthiness. However, the situation turned around in 2021 with the National Bank of Poland and other central banks globally raising interest rates. This, coupled with stricter lending conditions, caused a significant drop in mortgage sales, reaching the lowest levels seen in the past two decades.

However, there is good news on the horizon. Spring of 2023 brought a positive change as market interest rates began to decline. Additionally, financial authorities eased lending conditions by reducing the minimum interest rate buffer. These developments, combined with the continuous rise in wages, have improved creditworthiness and triggered a thaw in the mortgage market.

Overall, the mortgage market in Poland is showing signs of recovery after a challenging period. The recent changes in interest rates, lending conditions, and wages have created an environment conducive to increased mortgage sales. As the market continues to stabilize, it is expected that the mortgage sector will experience positive growth and contribute to the overall economic recovery of the country.

The source of the article is from the blog tvbzorg.com