CBA Hypomonitor: February continued with a temporary boom in mortgages, at a rate of 4.46%.
February ranked among the five strongest mortgage months ever in terms of volume in billions of crowns, but also with a continued strong number of new mortgage originations.
Prague, 13 March 2025 - February ranked among the five strongest mortgage months ever in terms of volume in billions of crowns, but also with a continued strong number of new mortgage originations. In February 2026, banks and building societies actually granted new mortgages, excluding refinancing, worth CZK 29.7 billion. Compared to January, activity has picked up by 10% in volume terms, but this is consistent with a seasonal effect. Thus, since the beginning of the year, their volume of new mortgages has reached CZK 57 billion, which is CZK 17 billion higher than at the beginning of last year. Added to this is the strong volume of refinanced mortgages, which accounted for over 25% of total new mortgage business of over 40 billion in February.
The stronger volume of new mortgage originations was driven by another slight decline in the average realized interest rate on new mortgages to 4.46% from 4.48% in January, in addition to the CNB's impending tighter conditions on so-called investment mortgages. The year-on-year drop in mortgage rates of less than 0.3 percentage points reduces the average monthly repayment by almost CZK 700, or 0.7% of the mortgage applicant's net income. The strong volumes of new mortgages also reflect a further increase in their average size. This rose to CZK 4.63 million in February. Its 16% year-on-year increase, or CZK 630k, lifted the average repayment by almost CZK 3.4k. CZK, i.e. by approximately 3.5% of income. The average mortgage payment in February reached CZK 24.7 thousand, but we estimate its median amount to be around CZK 19.6 thousand.
This information is based on data from the CBA Hypomonitor, which captures data from all domestic banks and building societies providing mortgage loans. The next CNB meeting related to the setting of macroprudential mortgage policy will take place on 4 June, following March's relatively hawkish comments on the setting of the current 1.25%procyclical capital buffer (subsequent meetings will be held on 10 September and 26 November).
Note: In February 2026, we adjusted the structure of the published underlying data on newly originated and refinanced mortgages. This is due to the announced discontinuation of secured lending by two building societies, which would lead to de-anonymisation of data in the building society segment. For this reason, from February 2026 onwards, the underlying data are reported only in aggregate for the whole banking sector, i.e. for banks including building societies. At the same time, there has been a slight historical methodological revision of the data in the building societies sector.
Table 1: Summary of mortgage origination volumes and average interest rates for February 2026
|
|
monthly values |
|
year-to-date values |
||||
|
|
Volume |
Number |
Rate |
|
Volume |
Number |
Rate |
|
|
|
||||||
|
Total |
40,5 |
9 241 |
4,45 |
|
75,8 |
17 392 |
4,46 |
|
New loans |
29,7 |
6 414 |
4,46 |
|
56,7 |
12 426 |
4,47 |
|
of which: |
|
|
|
|
|
|
|
|
for purchase |
22,5 |
4 848 |
4,47 |
|
43,8 |
9 563 |
4,47 |
|
for construction |
4,3 |
934 |
4,41 |
|
8,1 |
1 764 |
4,42 |
|
Other |
2,9 |
632 |
4,53 |
|
4,8 |
1 099 |
4,55 |
|
Refinanced from another institution |
9,1 |
2 381 |
4,43 |
|
16,0 |
4 173 |
4,44 |
|
Refinanced internally, increased |
1,7 |
446 |
4,41 |
|
3,1 |
793 |
4,42 |
Source.
"February, with a seasonally adjusted volume of new mortgages of almost 34 billion, was one of the five strongest months, also due to a further increase in the average amount to more than 4.6 million, but also thanks to the strong number of new mortgages, which, however, are rather around the lows of 2018," says Jaromír Šindel, chief economist at the Czech Banking Association.
Note: the outlook to the end of the year is momentary - it is based on the current trend, not on a model forecast.
February remained at probably temporarily strong seasonally adjusted levels
"Demand for mortgages remains extremely high, with a monthly volume of over CZK 40bn last seen at the end of 2021. Unsurprisingly, new regulation on "investment mortgages" comes into force from 1 April 2026, and the forthcoming tightening of conditions will always trigger a smaller or larger wave of frontloading.The demand is also fueled by a higher interest in refinancing, which already accounts for more than 25% of the share, which is also something we have not seen for a long time," says Milan Voldřich, product manager for home loans at Raiffeisen Bank.
In February, banks and building societies actually granted new mortgage loans without refinancing for CZK 29.7 billion. Compared to January, new mortgage activity thus increased by around 10% in volume, which corresponds to a seasonal effect. After seasonal adjustment, February's new mortgage numbers brought a 4.7% slight deterioration to CZK 33.8 billion compared to January's CZK 35.5 billion. However, this volume is above the average of the previous three months (CZK 31.9 billion) and ranks among the five strongest months. The volume of new mortgage originations is 39% higher in February compared to the first half of last year. In year-on-year terms, growth in the volume of mortgage originations slowed to 41% in February from 45% in January, following an average 41% year-on-year increase last year. So far this year, around 77% of new lending volume has been for purchase and 14% for construction, compared with 75% and 19% in the previous six years.
The number of new mortgages rose 6.7% month-on-month to 6,414 in February, up a fifth on a year ago. We estimate the seasonally adjusted number to be around 7,175, about 3% above the average number (6,950) in the previous three months. Year-to-date, the number of new mortgages has reached 12.4 thousand (+25% y/y). Although the dynamics of the number of new mortgages in the last three months, i.e. December to February, implies an increase this year to a total of around 85.9 thousand, following the CNB's tightening of conditions in April, we can expect fewer new mortgages, which, with a negative 7% shock, would close this year at around 81 thousand, 6% more than last year. However, these numbers would remain below the average of 95k from 2016 to 2018 or well below the 114k of 2021.
The share of refinanced and increased loans is growing. The volume of refinanced and increased loans (internally or from another institution) rose to CZK 10.8 billion in February. This is 53% above the average 7.1 billion refinanced last year and 176% above the 3.9 billion refinanced in 2024. The share of refinanced loans in total mortgage originations then rose to 26.7%, above last year's average of 20.7%. It is thus above the 17.2% share from 2022-2023, but still below the nearly 29% share from 2020-2021, when households refinanced at a mortgage rate of 2.14%. In February 2026, households refinanced at a rate of 4.43%, less than three-tenths of a percent higher than the 4.69% rate a year ago. The higher refinancing volumes reflect the confluence of expiring longer fixings from the low interest rate period and shorter fixings from the recent period of higher interest rates.
Overall, banks and building societies granted new and refinanced mortgages in February in the amount of CZK 40.5 billion, which is 14.5% more than a month ago. Their total volume so far this year has reached CZK 76 billion, which represents a 58% increase compared to January-February of the previous year.
"In March, we expect the current strong trend to continue, as applications submitted in February will still be processed, however, the current geopolitical situation, which has sent, for example, 3-year interest rate swaps higher by about 60 basis points in the last two weeks alone, could have a negative impact on the next months", notes Ondřej Šuchman, product manager for housing loans at Komerční banka.
Chart 2: New mortgages granted without refinancing
In February, mortgages held strong above-average volumes but were still below average relative to house prices or the number of new mortgages
Source: Czech Banking Association, CNB, CSO, Flat Zone.
Chart 3: Average mortgage amount by purpose
The average size of a newly granted mortgage in February exceeded CZK 4.6 million
Source.
The average mortgage rate fell slightly to 4.46% in February, but the jump in market rates does not favour this trend
The average realised interest rate on new mortgages fell slightly further in February to 4.46% from 4.48% in January. Its February level is thus 0.26 percentage points lower than the 4.72% rate of a year ago, which reduces monthly mortgage payments by around 0.7% of the applicant's net income, i.e. by 0.7k. CZK. This compares to an average mortgage rate of 4.58% in 2025 compared to 5.07% in 2024, reflecting a correction in Czech longer-term market rates, which have a key influence on mortgage rates. Their decline earlier in the year reflects a combination of more dovish comments from the CNB as well as lower consumer price growth. At 4.46%, February's mortgage rate was 1.09 percentage points above average market swap rates. This is approximately 0.03 p.p. above the long-term average since 2014 (1.06 p.p.), while in the previous three months the spread to the long-term average was -0.2 p.p. However, the uncertainty of oil and gas supplies due to the US-Iran war more than reversed the January and February movements in market rates.
Chart 4: Average mortgage interest rate - new business
February mortgage rates fell slightly further
Source: CNB, CBA
Chart 5: The US attack on Iran and the associated uncertainty over oil and gas supplies has pushed interest rate swaps up around 50-60 basis points
Source: LSEG, Macrobond (12 March 2026), CBA
The impact on the average monthly mortgage payment of around CZK 24.7 thousand, but with a median of CZK 19 thousand
The combination of the fall in interest rates and the higher average mortgage amount in February 2026 compared to the 2025 averages increased the average monthly mortgage payment by 2k. Kc. The scenarios of the evolution of the monthly payment for different mortgage maturities are shown in Table 2. It suggests that a fall in mortgage rates of over 0.1 percentage point relative to their average rate of 4.58% in 2025 would, for an average mortgage size with a typical repayment term of around 26.8 years, reduce the monthly repayment by less than CZK 300 to around CZK 24,7 thousand. This is a reduction of 0.3% of the applicant's net income compared to the average repayment in the previous year. Compared to the average mortgage rate of 5.07% in 2024, the savings due to the interest rate amounted to less than CZK 1,600 for a mortgage at its current average value. However, the current average mortgage amount is 10% higher than its average amount in 2024, which contributes to an increase in the monthly payment of CZK 2.2k. The average monthly mortgage payment in the previous year, based on the previous year's average mortgage amount, but at the current interest rate.
Conversely, when compared to the average 2.8% mortgage rate for new mortgages in 2019, the current refinance mortgage rate of 4.43% at the shortened loan maturity raises the monthly payments on the average mortgage by more than 1,600k, or about 3.2% of the current gross average wage.
Table 2: Illustration of the average and median monthly mortgage payment by maturity and interest rate
Source: CBA (the table is available in an xls file attached on the CBA Hypomonitor website)
Note: The coloured column corresponds to the interest rate of the latest CBA Hypomonitor combined with the usual maturity, other rates are illustrative. The coloured row corresponds to the average and median maturity of new mortgages according to CNB data; amounts are rounded to the nearest ten kroner. The median repayment amount is based on the median mortgage size. It is calculated on the basis of the ratio of the average and median size of new mortgage loans over the last three quarters according to CNB statistics. The calculation also assumes an average maturity of 30 years (corresponding to the median) and an average interest rate, since the difference between the average and median rates is negligible in the long run (approximately 0.045 percentage points). The median, unlike the average, represents a "typical" value - half of the loans are lower and half are higher - and is not affected by outliers.
The average size of a newly granted mortgage has increased with January's 4.51 million. CZK is on a growth trajectory
The average size of an actual newly granted mortgage rose to CZK 4.63m in February. CZK, i.e. by almost 3% month-on-month. Its size is thus 16% higher than the CZK 4 million in the same period last year. CZK a year ago. A gradual decline in mortgage rates or a gradual rise in real household wages (5.1% y/y in Q4-2025 or graphically here), however, with slower growth in disposable income, is making it possible to achieve a higher mortgage. Also reflected here is the continued relaxation of macroprudential income limits by the CNB to date (only the 80% LTV limit applies, or 90% for applicants under 36). These will be tightened to 70% LTV and 7x DTI for so-called investment mortgages from April 2026.
Mortgage levels are then also linked to house price trends, which continued to show strong growth of almost 11% year-on-year in Q3 2025 or 16% in the case of house prices. Supply prices slowed quarter-on-quarter to 2.4% in the final quarter of 2025, the lowest increase since mid-2024. However, the pace remains above the long-term average of 1.8%. According to data from Flat Zone, the average transaction price of apartments, both new and older, in the Czech Republic reached 97.5k in Q4. This reflects a 2% quarter-on-quarter and 11.3% year-on-year increase.
Chart 5: Illustrative comparison of the average monthly mortgage payment with a year ago, depending on the interest rate, mortgage size and maturity in years
In the year-on-year comparison, the decrease in the mortgage rate resulted in a saving of CZK 700 on the average monthly payment, but the increase in the average mortgage amount caused an increase of CZK 3 370.
Source. Note: Amounts are rounded to tens of crowns.
Chart 6: Seasonality of new mortgage loans
Source.
Note: These are actually new mortgages (i.e. excluding refinancing and increases). The underlying data is available in the xls file attached on the CBA Hypomonitor website. The outlook to the end of the year (fcst) is a snapshot - based on the current trend, not a model prediction.
Chart 7: Distribution of new mortgage loans by purpose
Source: CBA
Mortgage market to deliver strong volume growth of 41% in 2025 and nearly a quarter in numbers
In the full year 2025, banks and building societies provided new mortgage loans worth CZK 321 billion. This is CZK 93 billion more than the CZK 228 billion created in 2024. This year-on-year jump corresponds to a 41% increase. On top of that, mortgages were refinanced to the extent of CZK 85 billion, bringing the total mortgage market to CZK 406 billion in 2025 from CZK 275 billion in 2024. If we adjust the volumes for the increase in house prices of around 15-16% (according to various statistics), the volume of new mortgages grew slightly less in real terms. This corresponds to a more moderate increase in the number of new mortgages in 2025, by less than a quarter to more than 76.11 thousand, and a nearly 15% increase in the average amount of a new mortgage granted to CZK 4.21 million.
New mortgages were financed at an average rate of 4.58% in 2025, half a percentage point lower than in 2024, with the spread to the market swap rate curve less than one percentage point, slightly below the long-term average. The average monthly mortgage payment in 2025 was just under CZK 22,800, up 8.6% from 2024, and slightly above the likely more than 7% increase in average nominal wages last year. The average year-on-year increase in the monthly mortgage payment of around CZK 1,800 in 2025 mainly reflected the higher average mortgage level with an increase in the payment of almost CZK 2.9k. CZK, while the lower mortgage interest rate reduced the average monthly payment by more than CZK 1.2 thousand. CZK.
Chart 1: Annual volume, number and average amount of mortgages granted between 2020 and 2025
CBA publishes summary statistics for the entire banking market
The Czech Banking Association, in cooperation with its member banks, publishes new aggregate statistics on the housing market. These are mainly the volumes and numbers of newly granted and refinanced mortgages and the respective interest rate. These statistics are published by the CBA in aggregate form for the entire banking sector on a regular basis around the middle of each month. All domestic banks and building societies providing mortgages in the Czech Republic participate in the survey. The data are available from January 2020 in the attached file on the website www.cbaonline.cz, where the relevant statistics can also be found separately for banks and building societies. The above figures are for the sector as a whole, which can also be viewed in a simple graphical form on the website www.cbamonitor.cz.
Methodology of the CBA Hypomonitor
The CBA Hypomonitor divides mortgage loans granted by banks and building societies to households into several categories in order to distinguish new loans from refinanced or internal refixations. New loans are then reported in categories according to the purpose of the loan:
1. new loans
These are loans whose full volume enters the economy for the first time. This category does not include loan consolidations or loan refinancing. It is divided into three categories:
- Purchase of real estate
- Property construction - including property renovation
- Other new arrangements - only new loans that are in no way related to the purchase or construction of the property, e.g. so-called American mortgages, settlement of a JVM, repayment of the purchase price, settlement of an inheritance share, settlement of a cooperative share, etc.
2. Refinanced loans from another financial institution
These are loans that have been originated by refinancing one or more loans from a financial institution other than the reporting one. Irrespective of the amount refinanced and regardless of the amount of any increase, the total amount of the newly originated loan is reported in this category.
3. Loans increased or internally refinanced
These are loans that were already part of the reporting entity's portfolio in the previous reporting period and have undergone one of the following changes during the reporting period:
- an increase in the agreed amount
- changes such that the original loan has been refinanced/converted into a new loan within the reporting entity. This is a genuinely new contract and not, for example, just a new arrangement in the context of a refixation of an existing contract. Therefore, the volume of such loans in the CBA statistics is lower than 'other new arrangements' in the Czech National Bank statistics.
The following banks and building societies provide data for the CBA Hypomonitor: Air Bank, Banka Creditas, Česká spořitelna, ČSOB, ČSOB Stavební spořitelna, Fio banka, Hypoteční banka, Komerční banka, mBank, Modrá pyramida, MONETA Money Bank, MONETA Stavební spořitelna, Oberbank, Partners Banka, Raiffeisen stavební spořitelna, Raiffeisenbank, Stavební spořitelna České spořitelna, UniCredit Bank.