Czech banks continue to reduce mortgage rates

Interest rates on mortgage loan continue to fall according to an index tracking the indicator that's maintained by Golem Finance. Penize.cz writes that Moneta Money Bank, Hypoteční banka, ČSOB and Čěská spořitelna all reduced rates during the month of May. "When we add the gradual adjustment of rates at Oberbank and the discounts at FIO banka and Banc Creditas, we have one of the largest ever month-to-month rate reductions in months," said Golem Finance's spokesman Luboš Svačina. The GOFI 70 index, which monitors the rates offered for 70 percent LTV loans, fell from 2.43 percent to 2.29 percent. The index for 80 percent LTVs produced identical results, while even the GOFI 85 index slipped from 3.06 percent to 2.85 percent.