In July 2025, Czech banks and building societies issued new mortgages totalling 30 billion crowns – a surprisingly strong result. The number of new contracts also remains high, at around 7,000 loans. Analysts interpret this as a sign of continued lively mortgage activity.
Since the beginning of the year, the total volume of new mortgages in the Czech Republic has reached 180 billion crowns – 60 billion more than in the same period last year (compared with an increase of 50 billion in the previous month). At the same time, the number of new mortgages remains stable at approximately 7,000 loans. According to the ČBA Hypomonitor, these are not seasonally driven figures but rather an indication of persistently strong mortgage activity, possibly due to the slight drop in mortgage rates to 4.53 % and concerns over potential future rate hikes. Adjusted for seasonal effects, the volume of new mortgages stood at over 29 billion crowns – levels last seen in the second half of 2021 – while the number of applications is comparable to 2020.
The ČBA Hypomonitor forecasts that the volume of new mortgages, excluding refinancings, could reach around 297 billion crowns this year – an increase of 30 % compared with last year. The number of new contracts is estimated at roughly 72,200 loans, broadly in line with the average of recent months. The fall in mortgage rates by 0.54 percentage points reduces monthly instalments for borrowers by about 1,400 crowns, while the average mortgage in July rose to 4.28 million crowns.
The central bank’s response to the strong July figures will depend on further developments. If figures rise, as in 2020, to over 7,500 new mortgages per month, discussions on rate hikes could be reignited. By contrast, stabilisation at around 6,000 new loans, comparable with 2024, would support the current wait-and-see approach.
Adjusted for seasonal effects, the mortgage volume in July amounted to approximately 29.3 billion crowns, up 18.5 % from the previous month and well above the three-month average. The number of new mortgages increased in July by 0.9 % to 6,996 loans, 34 % higher than last year. Since the beginning of the year, a total of 43,700 new mortgages have been issued, an increase of 31.5 % compared with the previous year.
The volume of refinanced and top-up loans (either internal or from another bank) reached 7.8 billion crowns – almost double the previous year’s average of 3.9 billion. The share of refinanced loans in the total mortgage volume fell slightly to 20.6 %, but remains above last year’s average of 16.9 % and above the 17.2 % recorded in 2022–2023.
These data come from the ČBA Hypomonitor, which covers all domestic banks and building societies engaged in mortgage lending.
