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The average interest rate for two-year fixed-rate mortgages is 2.29 percent. These climbed to a new annual high, comparison service moneyland.ch reported. Property owners cannot be very happy with this situation.
Longer-term fixed-rate mortgages are still just below the annual high. The interest rate for five-year-olds is 2.23 percent and for ten-year-olds it is 2.33 percent. There have been ups and downs since the beginning of the year.
What’s special: With an interest rate of 2.59 percent, Sarong mortgages are currently more expensive than fixed-rate mortgages. According to the comparison service, this is a “historically exceptional phenomenon”.
Mortgage specialist Moneypark also sees risks in taking out a Saron mortgage. Since November of last year, the benchmark interest rate on ten-year fixed-rate mortgages has been an average of 13 basis points lower than on Saron mortgages.
Depending on the development of inflation
The question is how long it will stay that way. As long as the Swiss National Bank (SNB) leaves its base interest rate at 1.75 percent, benchmark rates for mortgage interest rates will not change much. The next decision will be made tomorrow, Thursday, March 21.
Inflation data at least suggest that interest rates will fall again soon. Inflation fell to 1.2 percent in February and is therefore within the SNB’s target range. For the full year, federal economists now expect inflation to be just 1.5 percent, instead of the previous 1.9 percent. But inflation still represents a huge uncertainty.
When will the SNB turn the interest rate screw?
Experts think the SNB will not turn the interest rate screw until June. Moneyland analyst Felix Oeschger (32) says: “If this is the case, the most likely scenario is that interest rates on fixed-rate mortgages in Switzerland will move sideways over the next few months.” According to Moneypark, two-thirds of mortgage lenders expect stable capital markets interest rates over the next three months and even predict a decline in interest rates for all periods in the third quarter.
Saron mortgage holders can benefit from interest rate cuts: “The fact that many economists expect three interest rate cuts this year suggests that Saron mortgages will be significantly cheaper at the end of the year,” says Benjamin Manz (42). Managing director of moneyland.ch. If the first rate cut comes next Thursday, there will be huge pressure on mortgage providers to cut interest rates as well.
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.
