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Home loan outlays high, but below June peak

Sustainability

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.

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