Banks and building societies issued new mortgages worth 26 billion Czech crowns in April, marking a 4% decrease in lending volume. According to the Czech Banking Association (CBA), this decline reflects both seasonal patterns and a mild correction following a stronger March performance.
The average mortgage rate continued its downward trend, reaching 4.65% from March’s 4.68%. Year-over-year, the CBA Hypomonitor shows a 0.44 percentage point decrease, translating to monthly payment savings of over thousand crowns for borrowers.
However, due to ongoing property price increases, the average new mortgage amount rose to 4.08 million crowns. This uptick has resulted in monthly payments increasing by more than 2,500 crowns compared to last year.
Looking ahead, the CBA projects that if the mortgage market maintains its momentum from the past two months, the volume of new mortgages could reach 293 billion crowns this year, representing a 25% increase from the previous year.
In terms of market activity, April saw 6,389 new mortgages issued, marking a 20% increase from the previous year. The volume of refinanced and increased loans rose to 6.2 billion crowns.