In September, banks arranged a total of 7872 mortgages in the total amount of 22.052 billion crowns.
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“The average interest rate fell by four basis points compared to August, stopping at 2.07 percent. It has decreased by 0.37 percentage points over the last six months.
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“Interest rates continue to fall, so mortgage rates are at the level of September 2017 at 2.07 percent. And with regard to the actions of some banks, their further decline can be expected,” added Jiří Sýkora from Fincentrum & Swiss Life Select.
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With a value of 2.07 percent, the average mortgage rate is at the level of September 2017
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This year, mortgage banks are thriving despite the coronavirus pandemic. In the three quarters of this year, banks provided loans worth more than 172 billion crowns. As Sýkora pointed out, banks did not negotiate such a volume in the first three quarters, even in the record years of 2016 and 2017.
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In order to break the record from 2016 and 2017, when banks provided mortgages for more than 225 billion crowns, they would have to arrange loans for approximately 53.5 billion crowns by the end of the year.
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The average loan is already almost three million
The average amount of the mortgage is also growing, with the current value of 2,801,344 crowns approaching the limit of three million crowns.
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According to the data of Fincentrum Hypoindex, it has increased by approximately 450 thousand crowns in the last twelve months. According to experts, this confirms that the growth of real estate prices is not slowing down.
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In September, mortgages from Equa, Moneta and UniCredit Bank, for example, fell in price. Some banks continue to reduce interest rates on their mortgage loans; from 5 October, they were slightly reduced by ČSOB and Hypoteční banka, with an annual, three-year and five-year fixation of 0.1 percentage point to 2.09 percent.
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From October 14, Air Bank also reduced mortgages. For new mortgages, it reduced the five-year fixation rate by 0.2 percentage point to 1.99 percent. For mortgages transferred from another bank, the interest rate starts at 1.79 percent.
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According to Sýkora, other banks may come up with a further reduction in rates. “The decline in mortgage rates is also due to the falling price of resources,” he added.
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