Bigbank: Home Loan Indicators Made a Small Step Back in February

The number of home loan contracts and applications fell by nearly a fifth in February compared to the previous month, but when calculated per working day, the decline remains within 5%, according to Bigbank's loan portfolio analysis.

According to Bigbank Estonia's head Jonna Pechter, February had four fewer working days, and therefore the smaller number of contracts and applications is expected. "Last fall saw rapid growth in sales numbers, but since we are obviously not talking about a boom, the couple of so-called breathing months at the beginning of the year are not a surprise," commented Pechter, adding that while compared to the active January in terms of new applications, there was a decline of a fifth, compared to February of last year there were still a tenth more home loan applications.

The average home loan amount in February was 129,346 euros, which is nearly a tenth below previous months, but is still more than 20% higher than a year ago.

"For now, the fluctuations have mostly been within the usual limits characteristic of the beginning-of-year months," commented Pechter, who believes that the fresh news of euribor rate cuts could give home buyers renewed enthusiasm in March.

According to Bigbank's head, there has been repeated speculation in recent weeks about whether and to what extent anxious times in the world might affect the domestic home loan market. "Over the past five years, we have all had to get used to many unexpected events, and such a way of life is unfortunately becoming a kind of routine. However, there is one thing on which everyone still agrees: there is always the right time to buy your own home," says Jonna Pechter, who believes that no one should refrain from living their life because of some distant fears. "A home has a very strong emotional value. My home is my security, as they say," the bank's head concludes the topic optimistically.