Mortgage lending eases in June despite strong annual growth

Czech banks and building societies provided mortgages worth 48.9 billion crowns in June, down seven percent from May but 32 percent higher than a year earlier. New mortgages excluding refinancing fell four percent month-on-month to 36.5 billion crowns, while the average interest rate rose to 4.79 percent from 4.67 percent in May. Despite the monthly slowdown, lending remained strong, with total mortgage volumes reaching 294 billion crowns in the first half of the year, up 59 percent year-on-year. Analysts say tighter central bank rules, higher market interest rates and rising property prices helped cool demand after several exceptionally strong months.