Categories: Market

SNB interest rate drop: Saron mortgages remain stable

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Thomas Jordan, president of the Swiss National Bank, announced an interest rate pause last week. This meant that mortgage interest rates on Saron mortgages did not increase further. (archive image)

Standard interest rates for fixed-rate mortgages were nearly the same across all maturities, according to analysis published Thursday by comparison portal Comparis.

The benchmark interest rate on ten-year fixed-rate mortgages was 2.73 percent at the end of September, while it was 3 percent at the beginning of the year. The medium-term benchmark interest rate remained almost unchanged at 2.68 percent.

There has been a slight trend towards short-term housing loans in the last three months. It was stated that almost one in three mortgage borrowers preferred the Saron mortgage loan. In the first half of the year, this rate was one in four. This shift has come at the expense of three- to five-year fixed-rate mortgages. Ten-year fixed-rate mortgages were becoming more common.

Comparis recognized mortgage borrowers’ hope that the peak could be reached with a decline in interest rates. However, the SNB signaled that it would increase interest rates further if inflation increases.

(SDA)

Source :Blick

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