The mortgage market fell steeply in March but rather than cutting rates to tempt in more customers, banks raised their rates slightly. The average interest rate rose from 2.42 percent in February to 2.45 percent according to Fincentrum Hypoindex. But the number of mortgages that were issued fell by 22.4 percent, while the volume fell 25.5 percent compared to February to CZK 13.8bn. Ironically, March was shaping up to be a record-setting month, according to Vladimír Staňura, chief consultant to the Czech Banking Association. “The real fall will come in April and in May. Judging by March, the fall will probably be 50 percent compared to February,” he said. “The nervousness of buyers should start receding in June or rather July depending on how people start returning to work and how contact tracing will work. That’s when the market should bounce off the bottom.”
