Euro Zone Mortgage Demand Falls as Rates Rise
Demand for euro zone mortgages dropped significantly in the third quarter as rising interest rates and lower consumer confidence impacted the housing market. Banks reported tighter lending standards and expect further restrictions on credit in the coming months.
Euro zone mortgage demand fell sharply during the third quarter as borrowing costs rose and credit availability tightened, according to an ECB survey released on Tuesday. The decline reflects the direct transmission of monetary policy tightening initiated by the central bank to combat inflation. A net 27% of lenders reported lower housing loan demand, exceeding expectations of a 12% drop.
