Mortgage interest rates in the Czech Republic have fallen still further, as lidovky.cz reports that they currently sit at just 2.27 percent. That’s 7 bps lower than in January and marks their lowest ebb since 2003. Mortgage rates peaked in 2008 at 5.82 percent. The current low rates have sparked greater demand for financing, with the volume of mortgages issued in February rising by 1.4bn to CZK 11.632bn. The number of new mortgages issued rose by 793 in February to 6,719.
The Fincentrum analyst Josef Rajdl said, however, that increasing volume cannot compensate the banks that issue them for the excessively low margins they earn because the Czech market is too small. The banks will have to make profits on other products, he said.
