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Home loan outlays jump in March

Hungarian banks signed contracts for HUF 76.3 billion of new home loans in March, 26.5% more than in the same month a year earlier and 21.8% more than in February, data released by the National Bank of Hungary (MNB) shows, state news wire MTI reported.

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Monthly home loan outlays were at their highest level since October 2018.

The share of home loans with over one initial year of interest rate fixation was at 94.8% in March, compared to a 61.3% rate in March 2017. The MNB has been making a concerted effort in recent months to push consumers towards fixed-rate mortgage loans instead of variable-rate credit.

The average annual percentage rate of charge on home loans stood at 4.98% in March, down from 5.02% in February, but up from 4.41% in March 2018. The annualized rate on home loans was 4.64% in March.