Slightly higher residential mortgage demand
- Series:
- Survey of Bank Lending
- Number:
- 2/2024
Household credit demand increased slightly in 2024 Q2. Corporate demand remained broadly unchanged. Banks expect both household and corporate demand to remain approximately unchanged in Q3. Overall credit standards were unchanged. Banks reported slightly stronger competition for both household and corporate loans.
Households
Overall, banks reported that residential mortgage demand increased slightly in 2024 Q2 compared with Q1 (Chart 1). Banks have reported lower residential mortgage demand over the past three quarters and last reported increased demand in 2020 Q2. Demand for first-home mortgages has also increased slightly in Q2. Banks expect residential mortgage demand to remain unchanged in Q3.
Household credit standards and the use of interest-only periods were broadly unchanged in Q2, and banks expect no change in Q3 (Chart 1).
Overall demand for residential mortgages, credit standards and lending spreads
Source: Norges Bank
Overall, banks reported a slight increase in residential mortgage lending spreads, but they expect no change in Q3 (Chart 2). At the same time, banks also reported slightly stronger competition in Q2.
Banks’ operating environment, lending spreads and lending rates. Residential mortgage loans
Source: Norges Bank
Corporates
For non-financial corporates, banks as a whole reported unchanged credit demand in 2024 Q2 (Chart 3). Credit line utilisation and demand for fixed-rate loans were also unchanged. Demand for CRE loans fell slightly in Q1. Banks then expected demand to increase slightly in Q2 but reported unchanged demand at the end of Q2. In Q3, banks expect unchanged demand for the corporate sector overall and for CRE firms. Banks reported unchanged credit standards in Q2 and expect no change in Q3.
Overall credit demand, credit standards and lending spreads. Non-financial corporates
Source: Norges Bank
Banks’ funding costs fell slightly in Q2, while lending rates and spreads on corporate loans were broadly unchanged (Chart 4). Banks reported slightly stronger competition in Q2 and expect competition to increase slightly further in Q3.
Banks’ operating environment, lending spreads and lending rates. Non-financial corporates
Kilde: Norges Bank
In its work on monitoring financial stability in Norway, Norges Bank uses extensive statistics on developments in credit and financial markets. In order to expand the information base, Norges Bank conducts a quarterly survey of bank lending. The survey provides information on changes in the demand for and supply of credit and on changes in banks’ loan terms and conditions. Objective of the Bank Lending Survey