“Data for May confirm the trend of increasing interest rates. Fincentrum Hypoindex thus exceeded the 2 percent mark again after six months with a value of 2.06 percent. Moreover, with regard to the steps taken by banks in the area of mortgages in the last two months, it can be assumed that this growth will continue, “said Jiří Sýkora from Fincentrum & Swiss Life Select.
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Average mortgage rate by indicator Fincentrum Hypoindex increased by eight basis points during May. It was last above the two percent mark in October 2020.
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The average amount of the loan provided decreased only very slightly to the value of CZK 3,123,485
Jiří Sýkora, Fincentrum & Swiss Life Select
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Mortgages are rising throughout the entire banking market; in May, for example, Česká spořitelna and the ČSOB Group raised rates, which also raised rates in June – for the third time this year.
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Is he on the record?
In May, people arranged 12,984 mortgage loans worth 40.555 billion crowns. Although the volume of mortgages provided was 1.375 billion crowns higher than a month earlier, it did not break the record March, lagging behind it by more than four billion.
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Even so, we will probably see a record in the volume of agreed mortgage loans this year. In the first five months, banks provided mortgages for more than 179 billion crowns, which is roughly as many as people have agreed for the whole of 2019 (181.6 billion crowns).
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Last year, when people took out mortgages for housing for more than 254 billion crowns, was a record year. To overcome it this year, it will be enough for banks to provide loans worth about 75 billion crowns, ie about 11 billion crowns every month. But that should not be a problem.
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“The average amount of the loan provided decreased only very slightly to the value of CZK 3,123,485. However, this is only a small decrease, which is rather an exception confirming the growth trend in mortgages. The value of real estate on the Czech market continues to rise and we do not see any indication that this trend should be reversed. And if the state’s approach to housing construction does not change, nothing else can be expected, “added Sýkora.
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Internet demand for mortgages is also still high. “In May, we recorded a slight increase in mortgage demand, which rose from 3.3 billion crowns in April to 3.6 billion crowns in May,” Marek Kříž, co-founder of the Zaloto.cz mortgage market, told Novinky.
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He added that the average amount of online loan in demand was 2.8 million crowns in May and increased by more than 300,000 crowns year-on-year.
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