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The next interest rate decision of the Swiss National Bank SNB is coming soon. Will it increase the interest rate again or will it remain at 1.75 percent? Mortgage broker Moneypark requested 50 mortgage lenders. Conclusion: Almost everyone expects the SNB to announce another 0.25 point increase in the interest rate on Thursday.
This has a direct impact on homeowners with Saron mortgages. It seems like this will become expensive again with the interest rate increase. Mortgage lenders surveyed expect an average increase of 2.9 percent if the Federal Reserve raises interest rates. As a result, there are now even fixed-rate mortgage offers available for low-risk mortgage borrowers that are cheaper than the best offers for Saron mortgages.
Fixed rate mortgages are getting cheaper
This will certainly make long-term fixed-rate mortgages cheaper than Saron mortgages. Interest rates on fixed-rate mortgages have fallen steadily since June, according to Moneypark. At the end of August, an average interest rate of 2.81 percent was applied for a 10-year maturity. For comparison: 3.11 percent was due in June.
For slightly shorter terms there is almost no difference. The average interest rate for a two-year mortgage is currently 2.72 percent and 2.71 percent for a five-year mortgage. The biggest decrease was 5-year interest rates.
Interest rates are falling here
After the SNB’s two interest rate increases in March and June, calm returned to fixed-rate housing loans. Surveyed institutions confirmed that interest rates on fixed-rate mortgages have stabilized. And industry insiders don’t expect anything to change in the next three to six months.
Just over 40 percent of those surveyed expect an increase in the next three months for just the two-year period. Experts believe there is a high probability of a decline in interest rates over five years. The vast majority believe that everything will be at the same level within six months.
Moneypark conducted the online survey between August 7-14, 2023 among approximately 50 mortgage lenders. Banks, insurance companies and pension funds participated.
Source : Blick
I am Dawid Malan, a news reporter for 24 Instant News. I specialize in celebrity and entertainment news, writing stories that capture the attention of readers from all walks of life. My work has been featured in some of the world’s leading publications and I am passionate about delivering quality content to my readers.
