Czech mortgage rates rise due to inflation, may hit 5 percent next year

The average mortgage rate rose for the eighth month in a row but the number of people interested in a mortgage has not decreased. The volume of mortgages provided in October again exceeded CZK 30 billion, according to Fincentrum Hypoindex. Mortgage interest rates are expected to rise still further, perhaps approaching the 5 percent mark next year due to inflation and lending rate changes by the Czech National Bank (ČNB).

The average interest rate on mortgages rose by a further 11 basis points to 2.54 percent per year in October. Since March this year, the average interest rate on Czech mortgages has risen by 0.61 percentage points.