Record volume of mortgages

In March, the amount of mortgages provided climbed to a record of 44.7 billion crowns - says Fincentrum Hypoindex.



The average mortgage rate rose slightly to 1.94% after eleven months of declines. On average, people borrowed 3.1 million crowns. According to data from the Czech Banking Association, 16% of Czechs already have a mortgage and another 13% are planning to get one.


Some analysts explain the high interest in mortgages by the speculation that low interest rates might not last for much longer. At the same time, property prices are still rising, despite the pandemic. The figures from the construction industry confirm that this trend will continue. The number of constructions started and apartments completed is decreasing.


However, some analysts also warn that the demand for mortgages in Czechia is unprecedented - and it might be time to start thinking about the risks of the current situation. "Nothing can grow forever," says the director of the brokerage firm Golem Finance Libor V. Ostatek.