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There’s a big relief for property owners: Mortgage interest rates on Saron mortgages did not become more expensive in the third quarter. And this is the first time since the first rate increase in June 2022. This is the conclusion reached by the Comparis mortgage barometer.
The reason for this is the Swiss National Bank (SNB). Last week, it decided not to take another step regarding interest rates. And this is after five consecutive increases. Therefore, the key interest rate remains at 1.75 percent.
At the same time, benchmark interest rates on 10-year fixed-rate mortgages continued to decline; It was at 2.73 percent. At the beginning of the year, this rate was still 3 percent. This means that benchmark interest rates on fixed-rate mortgages are nearly equal across all periods. Benchmark interest rates for medium-term mortgages, such as 5-year fixed-rate mortgages, remained virtually unchanged at 2.68 percent.
“The global development of inflation rates, which have fallen sharply from their highest levels in the last few months, has provided relief,” says Dirk Renkert (58), financial expert at Comparis. Inflation in Switzerland was still at 1.6 percent in August. The core inflation rate also continued to fall in the USA and the Eurozone.
One in three votes for Saron
According to Comparis, short-term mortgage loans have become more popular in the last three months. Almost one in three mortgage borrowers preferred the Saron mortgage loan. In the first half of the year, this rate was one in four. But the number of 3- to 5-year fixed-rate mortgages has decreased; their share fell from 30 percent to just under 15 percent. Overall, nearly half of all deals are 10-year fixed-rate mortgages. This is significantly more than in the first half of the year; this figure was only one third.
“There seems to be growing hope among mortgage borrowers that the peak could already be reached with the interest rate falling,” says Renkert. But he also warns: “The SNB has already signaled that it will raise interest rates further if inflation rises sharply.” The decline in interest rates may only be temporary.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
