Number of mortgage applications rose sharply in March

The number of mortgage applications has unexpectedly risen sharply since the outbreak of the coronavirus crisis, according to De Hypotheker. Applications increased by almost a third in March compared to February. The Dutch Association of Real Estate Agents (NVM) also observes that the housing market is performing remarkably well.

According to De Hypotheker, the increase is due to homeowners refinancing their mortgages. They are choosing to do so now because they can still take advantage of the low interest rates. Fifteen mortgage lenders have already implemented interest rate hikes. Another reason for the increase is that many homeowners are renovating or making their homes more sustainable.

New home
In addition, the number of mortgage applications for new homes also rose sharply in March: 27.3 percent compared to February. The number of mortgage applications rose particularly sharply in the 25-35 age group: 31.4 percent.

Decline in sales
According to the NVM (Dutch Association of Real Estate Agents), the number of homes sold has fallen by 12 percent since March 16th, but the coronavirus isn't deterring people who were planning to buy a house. The number of homes put up for sale decreased by 9 percent. However, this decline already began at the end of 2019. According to the NVM, the coronavirus even appears to be having a reverse effect. There has been no price drop so far. However, the number of viewers is declining, because only those genuinely interested in buying a home are visiting.