Mortgage rates in the Czech Republic fell to a record 2.44% in November 2014 (for non- EU residents rates are significantly higher). Such low rates haven’t been seen since 2003, when the Fincentrum company started publishing rate index, the ee24.com informs citing cznews.info.
Mortgages rates were decreased in all the major banks of the Czech Republic and analysts from Fincentrum Roklen say that such a consumer’s pleasing trend will continue in the future. Swiss Life Company, in its turn, said that Czech banks now tend to occupy a larger market share, so the yield is in second place. The timing of this situation depends on the banker’s policy.
Despite the decline in interest rates, the number of applications for mortgages has reduced. In November 2014 only 7351 people borrowed money for real estate purchase in the Czech Republic which is by 373people less than in October. The volume of new mortgages fell by 343 million to 12.482 billion crowns (€450 million).