Demand for loans in the eurozone is growing for the first time in two years

House prices are falling and borrowing costs are falling, boosting demand for mortgages and consumer loans in the eurozone.

According to the Financial Times, households in the eurozone began actively borrowing for the first time in two years. Consumers are responding to lower housing prices, lower borrowing costs and increased confidence in the economy.

The European Central Bank (ECB) notes that improving prospects in the housing market, especially in Germany - Europe's largest economy, has become a key factor in the recovery of demand for mortgage and consumer loans. In particular, house prices in Germany fell by 8.4% last year, one of the biggest falls in the eurozone, where overall prices fell by 1.1% year-on-year.

The revival of demand for loans among households supports the temporary recovery of the eurozone economy. However, increased borrowing may contribute to the maintenance of high inflation, which increases policymakers' caution about lowering interest rates.

At the same time, the demand for business loans continues to decline for the seventh consecutive quarter due to a decrease in investment activity and an increase in corporate loan rates. Banks in the second quarter slightly eased lending conditions for households, but tightened them for businesses, especially for commercial real estate loans.

In the third quarter, demand for loans is expected to continue to grow among both households and corporate borrowers. This may indicate a gradual recovery of economic activity and improvement of the investment climate in the Eurozone.

Credit demand is an important indicator of economic stability and development, so these changes will be closely watched by both financial analysts and policy makers in the region.