Search for housing credit increases in the eurozone in the 2nd quarter.

Increase in home purchase loans in the euro area in the 2nd quarter of 2024.

For the first time since 2022, housing credit demand has increased in the eurozone in the 2nd quarter of this year.  

The information comes from the survey on bank loans published by the European Central Bank (ECB) and disclosed by Notícias ao Minuto. According to the data, "euro area banks reported a slight tightening of access conditions for loans to businesses, consumers, and other loans to households, but there was a relaxation in housing loans".

In the 3rd quarter of 2024, a moderate increase in restrictiveness is expected for corporate financing and no changes for loans to families.

On the other hand, data shows an increase in demand for housing credit, consumer loans, and other loans to families, for the first time since 2022. This is due to an improvement in the housing market outlook, an increase in consumer confidence, and also in durable goods expenses.

However, the demand for credits from companies has decreased again, due to higher interest rates and lower fixed investment.  

And for the next quarter, banks expect demand to increase in all loan segments.

"According to the banks surveyed, access to financing has improved for debt securities and, to a lesser extent, for money markets, while retail financing remained unchanged, except for short-term, which continued to deteriorate," the news article reads."

Note that with the reduction of the ECB's balance sheet, the impact on the increase in the restrictiveness of bank credit conditions was small, with a similar effect expected in the second half of the year.  

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