The Czech National Bank (CNB) has chosen to keep its base interest rates unchanged, which has led to banks leaving mortgage rates intact. This follows a slight drop in average mortgage interest rates last month, which many believed was the start of a slight reduction in mortgage costs. However, banks have largely followed the lead of the CNB, and it seems that this trend will continue for the rest of this year and perhaps even into the final quarter of 2023.
According to the Fincentrum Hypoindex, the average mortgage offer increased slightly by three basis points to 6.3 percent in April, with the most significant increase in ten-year fixed-rate mortgages. Banks increased mortgage rates with ten-year fixations by eight to twelve basis points. Mortgages with three-year foci are currently the most expensive, with banks offering them at an average rate of 6.7 percent per year.
It appears that most of the mortgage market is copying the CNB’s behavior and keeping their interest rates at the same level. While some banks have ended their promotional discounts, most of the market has continued with the same rate, which is expected to continue for some time. Despite this, the slight increase in average mortgage rates may make a difference in monthly mortgage repayments.