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Dynamic Credit Dutch Housing Market Update Q1 2023

Jasper Koops28 April 2023 at 16:30

Rising interest rates have significantly transformed the Dutch mortgage market. The demand for long fixed-rate periods and refinancing has decreased, while portability usage has surged. A substantial interest rate divergence is observed between the most competitive lenders and the largest banks, primarily attributed to reduced price sensitivity among existing homeowners with lower mortgage rates, who are now incentivized to remain with their existing lender and, in case of relocation, to port their mortgage combined with a further advance. Furthermore, house prices have decreased and general consumer confidence, although still negative, has improved during the quarter with consumption still growing.