Home loan outlays high, but below June peak
Hungarian banks signed contracts for HUF 82.9 billion of new home loans in July, 43.6% more than in the same month a year earlier but 2.8% less than in June, data released by the National Bank of Hungary (MNB) shows.
Monthly home loan outlays were still at high levels in July, with similar levels last recorded during the summer of 2003, national news agency MTI reported.
The average annual percentage rate of interest on home loans stood at 4.69% in July, up from 4.58% in June, but down from 4.75% in July 2017. The annualized rate on home loans was 4.39% in July.
The MNB announced in March 2017 the introduction of a "consumer-friendly home loan" certification to counter high interest margins and the low rate of borrower refinancing. Only banks whose lending products meet strict conditions laid out by the central bank may apply for the certification.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.