In June, people took out mortgages in the total amount of 44.5 billion crowns. After a slight cooling of interest in the previous two months, the mortgage market is growing again. However, March still holds the record with the volume of mortgages provided in the amount of 44.723 billion crowns.
“The June volume of mortgages sold is the second most successful month in the history of Fincentrum Hypoindex after March this year,” said Jiří Sýkora from Fincentrum & Swiss Life Select.
For the first time in history, the limit of 300 billion crowns of agreed mortgages per year could fall this year
Jiří Sýkora, Fincentrum & amp; Swiss Life Select
In June, 14,069 clients came to the banks for a mortgage, 1,085 more than in May, and even more 6448 clients year-on-year. This year, June, is the third most successful month in the history of Fincentrum Hypoindex in terms of the number of mortgages provided. The first place so far is March this year, when 14,401 mortgages were arranged, and the second place is held in November 2016, when 14,386 people took out a mortgage, analysts said.
Banks are not catching up
During this year’s first half of the year, banks arranged mortgages worth 223.786 billion crowns, a similar volume as in 2016 and 2017 for the whole year, when the total volume exceeded 225 billion crowns.
“Due to the fact that banks still do not manage to process mortgage applications, July can confirm a new record year. So far, he has held the record last year, when banks provided mortgages for more than 254 billion crowns. To break the annual record, banks thus have to conclude mortgage contracts for only about 30 billion crowns, “added Sýkora.
300 billion a year? It’s real
As Sýkora also mentioned, it is clear from the above figures and from the current statements of banks about the overcrowding of their mortgage approval processes that the numbers and volumes of provided mortgage loans will continue to grow.
For the first time in history, the limit of 300 billion crowns of agreed mortgages per year could fall this year.
The average amount of a mortgage loan fell slightly in May, but rose again in June, to CZK 3,161,080. In the last 12 months, it has already increased by more than 400,000 crowns.
“Of course, the situation in the construction industry also contributes to this, which has improved slightly in recent months, but it is still not enough to reverse the trend of rising real estate prices,” added Sýkora.
Rising prices are accelerating
Mortgage prices have accelerated in recent months. In June, interest rates rose by almost all banks. The average rate reached 2.13 percent.,
“It can be assumed that growth will continue, also thanks to the increase in interest rates by the CNB. This is confirmed by the current offer rates of banks, which in some cases are up to 0.8 percent higher than the average mortgage interest rate according to the Fincentrum Hypoindex, “said Sýkora.