Average mortgage rate drops to 2.11 pct, lowest level since October 2017

The average mortgage rate fell for a fifth consecutive month in August, to 2.11 percent, the lowest level since October 2017, according to data from the Fincentrum Hypoindex. Interest in mortgages was again record-breaking in August.

Banks provided 6,868 mortgages totalling 19.173 billion crowns in August. Although the volume of mortgages provided fell by almost 2.5 billion crowns compared to July, it was still the August in the history of the Hypoindex.

Since January 2019, when the average mortgage rate climbed to 3 percent from historic lows at the end of 2016, the average rate has fallen by 0.89 percentage points.

The continuous decline in the average rate since the beginning of last year was disrupted only in the first quarter of 2020, when the average rate rose by 0.1 percentage points over three months.

Author: Brian Kenety