Housing market|Consulting company Ernst & Young estimates that the demand for mortgages will recover in Europe next year.
Home loans demand is the lowest in Europe for a decade, says the economic newspaper The Financial Times (FT).
According to the magazine, the housing loan portfolio last grew as slowly in 2014, when its growth rate was 0.2 percent. The slow growth is primarily due to the rise in interest rates.
For example, just two years ago, the housing loan portfolio grew at an annual rate of 4.9 percent in Europe, FT says.
“The housing market is suffering [korkojen noususta] still the most,” says the director of international financial services at the consulting company Ernst & Young (EY). Omar Ali.
European Community estimates that the take-up of mortgages may pick up as early as next year. The company predicts that the mortgage portfolio will reach a growth rate of up to 3.1 percent in 2025.
“When the cost of living and borrowing costs fall, the credit demand of home buyers, consumers and companies should pick up again,” Ali tells FT.
According to FT, mortgages make up almost half of all lending in the euro area.
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