Cheap or Expensive Mortgages? A Case from the Czech Republic

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62690094%3A18450%2F20%3A50016800" target="_blank" >RIV/62690094:18450/20:50016800 - isvavai.cz</a>

Výsledek na webu

<a href="https://uni.uhk.cz/hed/site/assets/files/1074/proceedings_2020_1-1.pdf" target="_blank" >https://uni.uhk.cz/hed/site/assets/files/1074/proceedings_2020_1-1.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.36689/uhk/hed/2020-01-056" target="_blank" >10.36689/uhk/hed/2020-01-056</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Cheap or Expensive Mortgages? A Case from the Czech Republic

Popis výsledku v původním jazyce

Czech mortgage market currently experiences extraordinary period. Since the mortgage market was restored after the Velvet Revolution, interest rates have never been at such low levels as these times. From this point of view, mortgages have never been cheaper. On the contrary, property prices are significantly increasing and are at record high levels. Therefore, the aim of this article was to assess which of these two factors prevails. In other words, are mortgages cheaper or more expensive these times? In order to reach the main goal, we set a set of assumptions related to mortgage installments. The period examined was years 2009-2019. The data were collected from the Czech National Bank, Czech Statistical Office and Hypoindex.cz. Our results show that even if the property prices are approximately 1.5times higher in 2019 in comparison to 2009, the proportion of interest on the first installment is lower. From this perspective mortgages remain cheap even now; especially thanks to very low interests rates. However, thanks to the high principal, debtors are exposed to higher interest rate or refinance risks now. From the debtor&apos;s point of view, the most favorable periods were 2015 and 2016.

Název v anglickém jazyce

Cheap or Expensive Mortgages? A Case from the Czech Republic

Popis výsledku anglicky

Czech mortgage market currently experiences extraordinary period. Since the mortgage market was restored after the Velvet Revolution, interest rates have never been at such low levels as these times. From this point of view, mortgages have never been cheaper. On the contrary, property prices are significantly increasing and are at record high levels. Therefore, the aim of this article was to assess which of these two factors prevails. In other words, are mortgages cheaper or more expensive these times? In order to reach the main goal, we set a set of assumptions related to mortgage installments. The period examined was years 2009-2019. The data were collected from the Czech National Bank, Czech Statistical Office and Hypoindex.cz. Our results show that even if the property prices are approximately 1.5times higher in 2019 in comparison to 2009, the proportion of interest on the first installment is lower. From this perspective mortgages remain cheap even now; especially thanks to very low interests rates. However, thanks to the high principal, debtors are exposed to higher interest rate or refinance risks now. From the debtor&apos;s point of view, the most favorable periods were 2015 and 2016.

Druh

D - Stať ve sborníku

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2020

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Proceedings of the international scientific conference Hradec Economic Days 2020

ISBN

978-80-7435-776-3

ISSN

2464-6059

e-ISSN

2464-6067

Počet stran výsledku

8

Strana od-do

488-495

Název nakladatele

Univerzita Hradec Králové, Fakulta informatiky a managementu

Místo vydání

Hradec Králové

Místo konání akce

Hradec Králové

Datum konání akce

2. 4. 2020

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

000568108700054