July surprised with strong volumes, as well as the number of new mortgages, according to data from the CBA (Czech Banking Association) Hypomonitor, which captures data from all Czech banks and building societies providing mortgage loans. In July 2025, they provided new mortgages for CZK 30 billion (€1.225 billion).
Since the beginning of the year, this represents a total of CZK 180 billion (€7.35 billion), which is CZK 60 billion (€2.45 billion) more than a year ago. Added to this was the continued strong number of new mortgages of around 7 thousand. These are not seasonally driven numbers, but it looks like strong mortgage activity, which may reflect a combination of a further slight decrease in the mortgage rate to 4.53% in conjunction with concerns about its possible future growth due to higher market interest rates. A year-on-year decrease in the mortgage rate by 0.54% points reduces monthly payments by approximately 1.5% of the net income of the mortgage applicant.
If mortgages maintain the dynamics of the previous two months, then the volume of new mortgages without refinancing could reach CZK 297 billion (€12.3 billion) in 2025, +30% compared to last year.
“I recalculated the July mortgage numbers three times, as they surprised me significantly upwards, both in volume and numbers. The higher demand probably reflected the risk of a possible future increase in mortgage rates, which may later be reflected in milder numbers in the following months,” believes Jaromír Šindel, Chief Economist at Czech Banking Association.
