New business with private real estate loans also collapsed in April. A growing proportion of new business comes from loan extensions.
(Photo: dpa)
Frankfurt The slump in mortgage lending continued in Germany in April. New business with private real estate loans fell again by half compared to the same month last year. The loan volume was only 13 billion euros. It is the weakest April since the start of data collection 20 years ago, according to analysis by Barkow Consulting based on Bundesbank data.
The construction financing business, which is important for German financial institutions, has fallen sharply as a result of the interest rate turnaround – especially at the beginning of this year. New business in the first quarter of 2023 as a whole fell by a good 50 percent compared to the first quarter of 2022.
New business in April was also around 15 percent below the March level. According to Barkow, it is difficult to imagine that new business was better in May: The analysis company points out that, according to the credit agency Schufa, the number of new mortgage contracts in May fell further compared to the previous year.
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