In addition to an increase in the number of homes sold, this may be partly due to faster-rising house prices and stronger wage growth in the Netherlands compared to the rest of the euro area.
Combined with lower interest rates, this wage growth allows households to borrow more to finance increased house prices – which are partly due to the tightness in the housing market. Higher mortgage loans are taken out as a result and consequently, bank lending also increases more strongly.
Fixed-interest period of 5 to 10 years back in demand
From 2020 to 2022, many households opted for a fixed-rate period of more than 10 years. Since 2023, that preference has gradually shifted: today, more than half of new residential mortgages issued by banks fall into the 5- to 10-year fixed-interest rate category.
Before 2023, interest rates were low and the rate differentials between various fixed-interest periods was limited. Households then opted for long-term security.
Since 2023, the gap between interest rates for different fixed-interest periods has widened. As a result, households now appear to prefer shorter fixed periods, possibly anticipating that rates will be lower when it's time to renew their mortgage.