At the beginning of the year, there was an unusually great interest in mortgage loans in the Czech Republic. Starting from March 2020, interest rates were sharply falling due to the coronavirus crisis. As this aspect affects mortgage interests of the customers, the applicants had a strong interest in applying for new mortgages and refinancing old mortgages. Decline of average mortgage interest rate continued at the beginning of this despite the expectations of an increase in the interest rates.
After a year of continued reduction in interest rates, the mortgage market witnessed a slight increase. The interest rates are expected to continue to rise and many financial institutions have already adjusted their mortgage supply rates.
Not only was the volume of leased money reached a record level, but also the number of newly agreed loans was extremely high. Just during this March over 14 thousands of new mortgages were closed. The upwards trend of closed mortgages that have started last spring continues to the present and will be most likely stopped only by rise in interest rates.