More affordable mortgage rates
More affordable mortgage rates
The disinflation process, which paved the way for monetary easing in CEE and Eurozone, has already positively impacted mortgage borrowing rates for households. The steepest decline in average interest rate on new mortgages for households was observed in Hungary (-4.6 percentage points), while Slovakia saw a very limited decline (-5 basis points) from CEE countries. Due to the brisk pace of monetary easing in Czechia and Hungary this year, both countries reported the largest declines in interest rates on new mortgages in 2024, with decreases of 0.6 and 1.9 percentage points, respectively. Currently, Poland offers the highest mortgage rates in the EU, as the central bank absented in monetary easing this year and indicates possible rate cuts only by 2025. The mortgage market, heavily exposed to variable rates, can also be partially blamed for the high average mortgage rates, especially with inverted yield curves.