Czech mortgage lending surges despite higher interest rates

Czech banks and building savings institutions issued mortgage loans worth CZK 61.5 billion in April, up 11 percent from March and 90 percent higher than a year earlier, according to the Czech Banking Association’s Hypomonitor. New mortgages, excluding refinancing, rose to CZK 44.2 billion, while the number of newly issued loans climbed to just over 9,000. The average mortgage rate edged up to 4.52 percent from 4.43 percent in March. Analysts say demand was partly boosted by borrowers rushing to secure financing before tighter conditions for investment mortgages and further rate increases. The average newly issued mortgage reached CZK 4.89 million, about 20 percent higher than a year ago, reflecting continued pressure from high property prices.