Mortgages unlikely to become cheaper in 2024
Published: Tuesday, Dec 12th 2023, 00:50
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Inflation rates have been on the decline for some time. This has triggered speculation on the financial markets about possible interest rate cuts by the central banks. This is also the case in Switzerland.
Just a few days before the Swiss National Bank's (SNB) interest rate decision, Comparis is now venturing a forecast for the development of interest rates on fixed-rate mortgages in the coming year. Despite a sharp fall in swap rates - these are decisive for the conditions of fixed-rate mortgages - the comparison service expects only a sideways movement with a slight downward trend in medium and long-term mortgage rates in the coming year, according to a forecast published on Tuesday.
And Comparis does not expect any major changes in the short-term segment for the time being. Specifically, Comparis expects five-year fixed-rate mortgages to range between 1.80 and 2.25 percent (currently 2.21%) by the end of 2024. Ten-year mortgages are likely to be between 2.00 and 2.40 percent (2.31%).
Although inflation rates in Switzerland have now been well below the 2% upper limit targeted by the SNB for the sixth month in a row, the monetary authorities are monitoring the development of inflation. In addition to geopolitical uncertainties, there are other cost drivers such as rent increases and electricity prices. These exerted permanent pressure on inflation. This limits the SNB's room for maneuver. "It is therefore too early to sound the all-clear," says Comparis.
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