The value of BIK Index - Demand for Housing Loans (BIK Index - PKM) amounted to 33.2 percent in July this year. This means that in July this year, on a business day basis, banks and credit unions sent BIK inquiries about housing loans for an amount higher by 33.2 percent y / y. In July 2021, a total of 43.08 thous. potential borrowers, compared to 38.75 thousand. a year earlier - this is an increase of 11.2 percent. Compared to June this year. there were less of them by 9.7 percent. Average value of the requested loan in July this year. amounted to 328 thousand. PLN and is higher by 14.6 percent than the value from July 2020, it was announced "The value of the Index was positively influenced mainly by the increase in the average amount of the requested housing loan, which is once again a record-high level in the entire history. In July 2021, the average amount of the requested loan was PLN 41.7 thousand higher than a year ago. The increase in the number of applicants compared to July 2020 also had a positive impact - 4.33 thousand more people applied for a housing loan than in July last year," said the main analyst of BIK, Waldemar Rogowski. In July this year. the demand for housing loans in terms of value continued to be in a strong upward trend that started in December 2020. "Compared to January this year, the average amount of the requested loan increased by PLN 21.5 thousand (7 percent). The increase in the average loan amount to the record amount of PLN 328 thousand reflects the current situation on the housing market, i.e. the increase in the average PUM price In this case, it is important, however, what is the relation between the average salary and the price of a square meter of new residential space. [...] However, the situation must be monitored on an ongoing basis, because in my opinion it may be one of the factors limiting the demand for a mortgage," Rogowski also pointed out. The second factor may be the change in the approach to calculating creditworthiness for loans over 25 years. Despite the possible longer period for which the loan may be granted (e.g. for 30 years), the creditworthiness will be calculated as if it had been granted for a maximum of 25 years. As a consequence, this will increase the value of the capital installment, and thus limit the possibility of granting a higher loan with the same income. This extension of the loan period, resulting in a reduction in the capital installment with the same level of income, made it possible to grant mortgage loans for increasingly higher amounts in connection with the increase in real estate prices, it was also reported. In the analyst's opinion, these two factors may to some extent limit the future demand for housing loans, but he is still positive about the interest in mortgage loans in the near future. The BIK Index - PKM is calculated per business day, excluding inquiries about housing loans for amounts exceeding PLN 1 million and inquiries about the same client in the next 90 days. The index methodology was developed by the Credit Information Bureau in cooperation with the Institute of Economic Development of the Warsaw School of Economics. The index is published monthly. Source: BIK and ISBnews