The average mortgage rate at the beginning of May rose slightly to 6.32 percent from 6.30 percent in April. This follows from the data of the Swiss Life Hypoindex, which is processed on the basis of data on the fifth working day of each month. The methodology reflects the current average mortgage loan offer rate for 80 percent of the property’s value.
“The hypoindex showed an increase for the second month in a row. This is a very small increase caused by a rate increase at one of the monitored banks. The relative offer rate thus stabilized at 6.32 percent. Taking into account that it is an average rate, they can in certain In some cases, clients can get a rate up to 0.8 percentage points lower,” said Swiss Life Select analyst Jiří Sýkora.
The monthly installment of a mortgage loan for 3.5 million crowns agreed up to 80 percent of the estimated property price with a maturity of 25 years and an average offer rate of 6.32 percent increased by 37 crowns to 23,242 crowns in May. “Although the monthly installment is no longer growing at such a significant rate as, for example, a year ago, compared to the installment two years ago, when the average offer rate was 2.40 percent, clients will pay more than 7,700 crowns,” added Sýkora.
The average offer rates of mortgages for young people under 36 years of age, i.e. over 80 percent of the property’s mortgage value (LTV), both rose and fell in price last month. For example, three- and five-year fixed mortgage rates fell by one and two basis points, respectively. On average, banks offer three-year fixed mortgages with an LTV above 80 percent for 6.69 percent and five-year fixed mortgages for 6.31 percent.
On the contrary, one-year fixed rates rose by six percentage points to 6.21 percent. Fixed ten-year mortgage prices stagnated.
Mortgages with an LTV of up to 80 percent fixed from one year to ten years have only become more expensive. Mortgage rates fixed for one year and ten years increased by two points to 6.67 percent and 6.12 percent, respectively. Mortgages with fixed terms for three and five years rose in price by one point to 6.43 percent, respectively. 6.06 percent.
The Czech National Bank (ČNB) left interest rates unchanged again at the beginning of May. The two-week repo rate has thus remained at seven percent since last June. Base interest rates and thus mortgage rates will probably remain at higher levels for a longer period of time. “The outlook for the development of mortgage rates has not changed in any way yet. Furthermore, we assume that the rates will move in the current numbers,” Sýkora added.
“As the CNB still cannot lower its interest rates, mortgage rates are not changing too much either,” said 4fin consultant Jan Schwarzbach. According to him, a similar situation can be expected until the first reduction by the CNB, which will be a situation that will also indicate a lot about long-term interest rates.
Jana Vaisová, a specialist in mortgages at the consulting firm FinGO, drew attention to the fact that mortgage rates rose slightly mainly due to the end of some “spring events” of banks. On the contrary, interest in mortgages is rising slightly. According to her, clients are already getting used to higher rates, and at the same time they realize that it is not worth waiting to purchase a property.