Czech banks needed lower rates to maintain mortgage momentum
The average interest rate for mortgages issued in May fell to 2.8 percent, down from 2.85 percent in April, making it the fourth consecutive monthly fall. Fincentrum Hypoindex reports that banks are competing to maintain market share and the lower rates succeeded in bringing in more customers. In all 6,977 mortgages were issued in May, which was 582 more than in the previous months. The total volume of the loans rose CZK 1.3bn to CZK 15.927bn, which was the highest that indicator has risen since last November. However, this year's monthly figures represent a huge fall compared to the first five months of the previous two years. In 2017, banks had already handed out more than CZK 96bn in mortgages by the beginning of June, though this slipped to CZK 85bn in 2018. This year, the figure is a paltry CZK 67.1bn.