Following a housing bond issue, the state-run Housing Financing Fund (HFF) has decided, effective as of yesterday, to lower the interest rates on mortgages by 0.15 percent.
Interest rates for HFF mortgages with a prepayment clause (in which a prepayment is allowed against a fee) are now set at 5.05 percent and without a prepayment clause at 5.55 percent, ruv.is reports.
The government presented changes to the HFF last week in an attempt to improve access to mortgages, revive the stagnated real estate market in Iceland and strengthen the economic situation overall.
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