Hungary mortgage and debt markets show record activity

Hungary's mortgage market has seen a seasonal decline in August, with new mortgage contracts totaling 211.7 billion forints, down from 254.9 billion in July and 282.1 billion in June. Despite this monthly dip, the total value of new mortgage contracts for the first eight months of the year reached 2,043 billion forints, effectively breaking the previous annual record.

Personal loan demand also showed a decrease in August to 137.3 billion forints from 152.6 billion in the previous month, though this remains significantly higher than the 95.7 billion recorded a year ago. Experts suggest the August decline may be due to seasonal trends.

In the sovereign debt market, the State Debt Management Center Zrt. reported strong auction demand during the third quarter. The government's financing plan for September 2026 has been met ahead of schedule in terms of volume. Currently, the debt-to-GDP ratio stands at 75.8%. Treasury liquidity reached a record high of 5,500 billion forints in July and remained elevated through the end of the quarter.