Czech consumers have gotten used to falling interest rates on mortgage loans over the past year, but economist Lukas Kovanda warns that it could be unwise to wait any further. He says that news of the successful Covid-19 vaccine trials and the roll-out of immunizations in Great Britain is likely to result in the end of recession, bringing with it higher rates as well as inflation. “Hand in hand with the more positive economic outlook will come the the expected return of faster economic growth of the Czech and foreign economies, which will spark the rise of inflationary expectations and with them, a rise in interest rates,” said Trinity Bank’s chief economist to the newsite Echo24. Stepan Krecka, chief economist of BH Securities, told the site that he saw slightly more room for mortgage rates to fall ,but that they would soon begin to rise. The end result is that both economists believe now is the time to conclude a mortgage for those who can. “Whoever waits for mortgages to become substantially cheaper will most likely not see it happen.” The Czech National Bank warned in November that it believes that residential prices are 17 percent over-valued at the moment at by as much as 25 percent in some locations.
