1 month Ago
Buyers Drive Record Demand
Applications for loans for purchases made up 62.3% of all requests — much higher than 47.8% the year earlier — indicating a significant change in lending activity. The spike is largely driven by buyers rushing to lock down lower mortgage interest rates in anticipation of potential shifts. And although the total application volume in May 2025 was just below the record in May 2021, purchase mortgages are clearly king, a sign of a buyers' market.
The average sum borrowed through mortgages also rose, with buyers taking out an average of €376,133, 6.1% more than a year ago. The average value of a home rose by 6.4% on the year to €510,022, little shy of the March 2025 all-time peak of €511,840.
New Build Mortgages Fall Despite Rising Housing Prices
While more mortgages were filed overall, there was a decline in the number of applications filed for new-build properties. May 2025 saw new build mortgage applications of 3,178, representing 6.5% of all activity – a drop of 11% on May 2024.
Prices for newly built homes continued to rise, however. And the average value was €551,800, up 4.5% year-over-year. Upscaling buyers, who moved into larger new homes, paid the most — on average €733,745, 6.8% more than last year. Novice buyers — described as "Young Starters" and "Stable Starters" by HDN — were charged an average price of €340,600, up 4%.
Refinancing Volume Moves in Tandem Downward
Purchase loans jumped, while refinancing and home equity grew share of application volume as it reached 18,403 applications, or 37.7% of the total volume in May 2025. That's a decline from the 32.1 percent share lenders had in May 2021, marking a market led more by homebuying than by financial rearranging.
