Customers disappearing as Czech mortgages jump to over 3%

Czech mortgage rates rose above 3 percent in January according to Fincentrum's Hypoindex, up from 2.91 percent in December. Rates have risen continuously since 2016 from 1.77 percent since December 2016, reports Czech Radio, which notes that just a year ago, consumers could still get financing for just 2.28 percent. It adds that the number of mortgage applications was the lowest in January for the past five years, just 4,764. That had been expected by most market observers, since the Czech National Bank introduced stricter conditions for mortgage loans to be accepted back in October. However, those who had hoped reduced demand for mortgages would translate into lower prices for real estate will be disappointed. The result could be that demand for rental flats could finally begin rising.