The average interest rate on mortgage loans is currently 2.15 percent. The present average interest rate is at the same level as it was in November 2017.
Compared to this year's spring, when we experienced a very sharp drop in rates due to the spread of coronavirus, current rates are declining at a slower pace. Although the declining trend is expected to continue, the situation may be changed by rising interbank rates and by the threat of upward pressure on inflation.
Subsequent development of interest rates depends on the state of the economy and its recovery from the crisis caused by the global coronavirus pandemic. Interesting special offers for mortgage loans perhaps can be expected in case of positive development of health situation and economics. Interest rates can be negatively affected by a situation of a rising number of clients who will not be able to repay their loans. Another reason for raising the interest rates may be the rising rate on the interbank money market. At simple terms this means that the costs of financial resources from which banks provide mortgage loans to their clients have increased.
Despite the tightening of conditions on mortgage applicants, interest rates are still gradually falling and thus mortgages are becoming cheaper. The current low rates are advantageous for clients who are currently considering purchasing real estate.