{"id":7622,"date":"2023-08-21T11:51:44","date_gmt":"2023-08-21T11:51:44","guid":{"rendered":"https:\/\/axevera.com\/2023\/08\/21\/housing-loan-market-has-seen-a-recovery\/"},"modified":"2025-07-01T10:32:17","modified_gmt":"2025-07-01T10:32:17","slug":"housing-loan-market-has-seen-a-recovery","status":"publish","type":"post","link":"https:\/\/axevera.com\/en\/2023\/08\/21\/housing-loan-market-has-seen-a-recovery\/","title":{"rendered":"Housing loan market has seen a recovery"},"content":{"rendered":"
The interest rate fell to 5,9% and the volume of mortgages recovered in February<\/strong><\/h6>\n

According to data from the Czech Banking Association (CBA), which collects data from all domestic banks and building societies providing mortgages, the volume of housing loans recovered slightly in February. In fact, banks and building societies disbursed more than 2.300 new mortgages for housing purposes, as well as CZK 7,9 billion. Compared to January, where there had been a 16% drop, there was a 20% increase, the highest since August 2022. However, compared to February 2022, the drop was almost 70%, still among the lowest values in the last 10 years. The average rate is falling slightly to 5,9%. “Recently, market interest rates have been very volatile in relation to uncertainties in the global and domestic economy and change direction quite often. This year, on average, they are only slightly lower than in the last months of last year, which also corresponds to a slight decrease in mortgage rates,’ said Jakub Seidler, chief economist of the Czech Banking Association. Mortgage rates react with a slight delay to the development of market interest rates with longer maturities, as they also reflect the inflation outlook, the expected development of CNB rates, economic development and the dynamics of similar interest rates abroad.<\/p>\n

\u010cesk\u00e1 spo\u0159itelna’s mortgage expert Marian Holub said that \u201cfavourable interest rate developments could encourage further volume growth. According to our expectations, they should stagnate or even decrease slightly this year\u201d. \u010cSOB CEO Martin Va\u0161ek says that the main reason Czechs apply for housing loans (one third of applicants) is to renovate their homes in order to reduce energy needs, in addition to ordinary repair work.<\/p>\n

The following table summarizes the volume of loans granted and the average interest rates for February 2023:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/strong><\/td>\nVolume (bn CZK)<\/strong><\/td>\nVolume (number)<\/strong><\/td>\nInterest rate %<\/strong><\/td>\n<\/tr>\n
TOT<\/strong><\/td>\n7,9<\/strong><\/td>\n2.900<\/td>\n5,89<\/td>\n<\/tr>\n
\u00a0\u00a0\u00a0\u00a0 New loans<\/strong><\/td>\n6,5<\/strong><\/td>\n2.289<\/strong><\/td>\n5,90<\/strong><\/td>\n<\/tr>\n
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Of which:<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 For purchase<\/td>\n5,1<\/td>\n1.692<\/td>\n5,88<\/td>\n<\/tr>\n
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 For construction<\/td>\n1,0<\/td>\n426<\/td>\n5,83<\/td>\n<\/tr>\n
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Other<\/td>\n0,4<\/td>\n171<\/td>\n6,25<\/td>\n<\/tr>\n
\u00a0\u00a0\u00a0\u00a0 Refinanced by another institution<\/strong><\/td>\n0,9<\/strong><\/td>\n433<\/td>\n5,89<\/strong><\/td>\n<\/tr>\n
\u00a0\u00a0\u00a0\u00a0 Internally refinanced<\/strong><\/td>\n0,2<\/strong><\/td>\n94<\/td>\n5,90<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The table below shows the various scenarios for the development of monthly repayment for different mortgage durations, from which it can be seen that an increase in mortgage rates leads to an increase in monthly repayment of about CZK 1,5 thousand for an average mortgage size.<\/p>\n\n\n\n\n\n\n\n\n\n
Average size of a new loan in CZK:<\/strong><\/td>\n2.856.578<\/strong><\/td>\n<\/tr>\n
Average interest rate in %<\/strong><\/td>\n<\/td>\n2<\/td>\n3<\/td>\n4<\/td>\n5<\/td>\n5,9<\/td>\n7<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n<\/td>\nmonthly instalment:<\/td>\n<\/tr>\n
Mortgage maturity in years<\/strong><\/td>\n15<\/td>\n18.382<\/td>\n19.727<\/td>\n21.130<\/td>\n22.590<\/td>\n23.944<\/td>\n25.676<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n20<\/td>\n14.451<\/td>\n15.843<\/td>\n17.310<\/td>\n18.852<\/td>\n20.293<\/td>\n22.147<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n25<\/td>\n12.108<\/td>\n13.546<\/td>\n15.078<\/td>\n16.699<\/td>\n18.223<\/td>\n20.190<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n30<\/td>\n10.558<\/td>\n12.043<\/td>\n13.638<\/td>\n15.335<\/td>\n16.935<\/td>\n19.005<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Sources:\u00a0https:\/\/www.camic.cz\/<\/a> ;\u00a0https:\/\/cbaonline.cz\/<\/a>
\nSources of images:\u00a0https:\/\/www.etmoney.com\/<\/a> ;\u00a0https:\/\/groww.in\/<\/a> ;\u00a0https:\/\/storyset.com\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The interest rate fell to 5,9% and the volume of mortgages recovered in February According to data from the Czech Banking Association (CBA), which collects data from all domestic banks…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[525,26],"tags":[],"yst_prominent_words":[],"class_list":{"0":"post-7622","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-en","7":"category-news"},"_links":{"self":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/7622","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/comments?post=7622"}],"version-history":[{"count":1,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/7622\/revisions"}],"predecessor-version":[{"id":14924,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/7622\/revisions\/14924"}],"wp:attachment":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/media?parent=7622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/categories?post=7622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/tags?post=7622"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/yst_prominent_words?post=7622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}