Wednesday, 22 May 2013

Interest on mortgages at new record low in October

ČTK |
22 November 2012

Prague, Nov 21 (CTK) - The average interest rate on Czech mortgages went further down in October to 3.36 percent, the lowest level since 2003 when monitoring of the indicator started, according to Fincentrum's Hypoindex.

The previous record of 3.46 percent was registered in September.

The number of mortgage loans taken in October rose by 900 to 6,162 compared with the previous month.

People are starting to realise that rates are really low and combined with lower real estate prices, this helps revive the mortgage market.

Volumes of loans have increased as well to Kc10.2bn from Kc8.7bn in September.

An average mortgage loan grew to Kc1.655m in October.

The Bank Board of the Czech National Bank (ČNB) slashed a two-week repo rate by 0.2 percentage points to an all-time low of 0.05 percent on November 1.

Banks do not rejoice at the low rates as they are unable to achieve higher margins.

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