Interest rates for fixed-rate mortgages continue to fall
Published: Wednesday, Dec 18th 2024, 09:00
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Interest rates for mortgages have fallen further. However, the downside potential is limited.
According to Moneyland's mortgage index, ten-year fixed-rate mortgages currently cost an average of 1.56 percent and five-year mortgages 1.38 percent. Interest rates for two-year fixed-rate mortgages are at just 1.30 percent, their lowest level this year.
Since the Swiss National Bank (SNB) initiated a turnaround in interest rates, mortgage rates have also fallen significantly again. Since mid-2023, interest rates for ten-year fixed-rate mortgages have almost halved. For five-year and two-year mortgages, they have even more than halved.
According to the index, Saron mortgages currently cost an average of 1.49 percent. This makes them slightly cheaper than mortgages with a ten-year term.
Further downside potential limited
According to the press release, the SNB could cut the key interest rate back to 0% by mid-2025. However, Moneyland analysts do not expect any further significant interest rate cuts. "This expectation is probably already largely priced into the interest rates for fixed-rate mortgages," said Moneyland expert Felix Oeschger.
However, if the SNB pushes interest rates back into negative territory, fixed-rate mortgages are likely to become significantly cheaper once again. "From today's perspective, this scenario seems possible, but not very likely," Oeschger continues.
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