Mortgage volumes increased 2.1 percent in 2012 in the Czech Republic, on the back of record-low interest rates and flat real estate prices. The Czech banks provided 73,595 mortgage loans worth CZK 121.6bn, according to the Local Development Ministry data. The pace of loans accelerated in the last quarter, soaring 23 percent y-o-y. Jan Sadil, director of Hypotéční banka, told ČTK the results were exceptional in the context of the dampened Czech and European economy. Average interest rates on mortgages fell in the second half of the year to just 3.17 percent in December. This was the lowest level on record since 2003. The average rate for 2012 was 3.52 percent, half a percentage point lower than the 4.04 percent average from 2011.
