In the Czech Republic, the average mortgage rate dropped to 2017 low

Buyers are increasingly taking out loans due to low interest rates and rising prices.

What happened? According to Fincentrum Hypoindex, in November, the mortgage rate in the Czech Republic reached its lowest level since March 2017 – 1.98%. Not surprisingly, the country is issuing a record number of mortgage loans for the second month in a row. On the other hand, high consumer demand is also due to the rapidly rising prices for housing, which are not stopped even by the pandemic. In November, the total amount of mortgage loans issued by banks amounted to € 1 billion – the maximum figure in four years, according to the local information portal 420on.cz.

Details

  • For 11 months of this year, the amount of agreed housing loans reached € 8.6 billion.To the end of the year, the total volume may break the record in 2016, when the amount of mortgages amounted to € 8.63 billion.
  • In November, 9 323 people applied to Czech banks to take a home loan, which is 523 more than in October.
  • The average agreed mortgage at the moment is € 110,290.

Perspectives. Nevertheless, banks are preparing for the worst, as the estimated value of the real estate offered in the Czech Republic is already below market value.

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Author: Chief Editor