Tuesday May 24, 2022

Dreams of years of rates took. Mortgages are on course

During August, mortgage banks closed a fifth of more mortgages for the same period last year. They even stuck a quarter in volume and now lag behind the lot results by less than a billion. Many of these are years of low rates.

Hypoten banks, cooperating in the creation of FINCENTRUM HYPOINDEX, in the past month provided 4,046 mortgages in the total value of 6.757 billion crowns, which in a year-on-year comparison means more than 20 percent in the volume and 24 percent in the volume of new loans. In August, these banks provided “only” 3,352 mortgages in the total amount of 5.448 billion crowns.

In the sum of eight months, the banks concluded mortgages worth 50.8 billion crowns and lagged behind the last results by only 759 million crowns.

Surprisingly excellent sales statistics in recent months are the result of several factors. On the one hand, it is the improving condition of the Czech economy and thus the optimism among potential applicants for the year, on the other hand, it offers a wide range of properties at a lower price and, last but not least, the current setting of annual rates.

Due to their decline, mortgages are now available much more than a year ago, when the economic recession peaked and the average rate of mortgages provided at the time was 5.67 percent.

To a certain extent, it would therefore be possible to explain the growing volume of mortgages by a low comparative base, but in August the banks also managed to compare in the meantime. The volume of mortgages provided increased by less than five percent compared to July.

years rates at their third minimum

One of the things that could start a mortgage train to stop is the re-increase in flight rates. The overall FINCENTRUM HYPOINDEX indicator has declined in the past few months, but the dynamics of decline are clearly fading. In the meantime, the average year-on-year rates in August “saddled” by just five basis points to 4.79 percent.

Mortgages with a fixed annual rate agreed for five years became the cheapest. In this fixed variant, rates fell by 9 hundredths of a percentage point to 4.75 percent. However, due to the smaller volume of mortgages provided with the fixation package, the decline in the aggregate index was not similarly drastic.

Summary for July 2010
Fixation period of the rate years all fixations 1 year 5 let
Hypoindex 4,79 % 5,22 % 4,75 %
Change from last msci (bp) – 5 -2 – 9
Prmrn ve hypotky (tis. K) 1 670 1 850 1 500
Msn spltka 1mil. mortgages for 20 years (K) 6 484 6 719 6 462
Msn spltka 1mil. mortgages for 15 years (K) 7 779 8 021 7 778
elovost vr:
According to vr for purchase on the total pot, incl 62 % 68 % 58 %
According to vr for construction on the total sweat, incl 23 % 18 % 22 %
According to other vr on the total sweat vr 15 % 14 % 20 %

Methodology of FINCENTRUM HYPOINDEX: FINCENTRUM HYPOINDEX values ​​the development of mortgage prices over time. It is out of the average year rate at which providers are in a given calendar month new mortgages for individuals. The weights are the volumes provided incl. Input data for deposits is provided by the following banks: esk spoitelna, SOB, GE Money Bank, Hypoten banka, Komern banka, Raiffeisenbank, UniCredit Bank, Volksbank CZ and Wstenrot hypoten banka.

Conditions inside the FINCENTRUM HYPOINDEX: FINCENTRUM HYPOINDEX can be freely only with the designation “FINCENTRUM HYPOINDEX” and the source “Hypoindex.cz.”

You dotete yourself at Hypoindex.cz.

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