The volume of mortgage loans rose 30 percent in the first of 2015 to CZK 88bn, with banks handing a total of nearly 50,000 such facilities. The rise in the price of real estate has been one of the factor driving up the total amount loaned, according to the Ministry for Local Development. The highest level of interest came in June, when banks agreed to almost CZK 20bn in mortgages, with consumers trying to take advantage of the lowest interest rates ever recorded while they’re still available. Some banks have begun raising their interest rates. In all, 10,794 mortgage agreements were concluded in June 2015, breaking a record set in 2007. Josef Rajdl, an analyst at Fincentrum, claims there no indication that any rise in interest rates will be rapid.
