The average offered mortgage rate in Czechia rose to 5.79 percent in October, the seventh monthly increase in a row, according to Expats.cz.
The average offered mortgage rate in Czechia reached 5.79 percent at the beginning of October, up 0.28 percentage points from September and the highest level since January 2024, according to Expats.cz, citing the Swiss Life Hypoindex. It is the seventh consecutive monthly rise, and rates are now 0.9 points above the recent low of 4.89 percent recorded in March. The index tracks average advertised rates for mortgages covering up to 80 percent of a property's value, so individual offers may differ depending on income, deposit, credit history and additional banking products. For a model loan of CZK 3.5 million repaid over 25 years, the October rate implies a monthly installment of roughly CZK 22,095. That is CZK 1,855 more per month than at March's average rate, or more than CZK 22,000 extra over a full year. Expats.cz notes that higher repayments may also affect buyers' ability to qualify for a loan, as banks assess affordability alongside other household expenses. The gap between fixation periods is widening: one-year fixed mortgages averaged 5.42 percent in October, while ten-year fixations averaged 6.35 percent. Swiss Life Select analyst Jiří Sýkora cautioned that a lower initial rate does not automatically mean a cheaper mortgage in the long run, since borrowers take on the risk of higher rates at the next refixation. The article adds that those nearing the end of a fixed period may gain from comparing offers several months in advance. Analysts quoted by Expats.cz do not expect substantial relief in the coming months. Swiss Life Select's Tom Kadeřábek said further modest increases followed by a search for a market peak are more likely than a sharp rise or a significant fall; a stronger increase would require a worsening geopolitical situation or another strong inflationary impulse.