Volume of new mortgages increases 17 percent month-on-month

Czech banks and building societies provided new mortgage loans at a value of CZK 12.3 billion in May, which was a month-on-month rise of 17 percent, according to data released by an industry body on Thursday.

The interest rate on fresh mortages rose almost imperceptibly, from 5.89 percent in April to 5.9 percent last month.

Both the volume and the number of mortgages in May were close to March values and – taking seasonal developments into account – are the highest since the middle of 2022, when the market began to freeze markedly.

The figures for the last three months suggest that the Czech mortgage market is recovering slightly, although it remains significantly subdued compared to the past.