ven, Juin 14th 2024
Swiss fixed-rate mortgages have seen slight increases since the start of the year, with expectations of sideways movement for the rest of 2024.
Despite the SNB’s interest rate cut in March, fixed-rate mortgages in Switzerland are slightly more expensive than at the start of the year. A sideways movement is expected for the rest of 2024.
Ten-year fixed-rate mortgages have seen a slight increase, with the benchmark rate rising from 2.26% at the beginning of the year to 2.35%, according to Comparis. The 10-year swap rate and the yield on 10-year federal bonds also rose by 0.12 and 0.20 percentage points, respectively.
“The slight increases suggest that rapid interest rate cuts are now seen less optimistically than six months ago,” said Comparis financial expert Dirk Renkert. The SNB’s earlier-than-expected rate cut did not lead to anticipated cuts in the USA, affecting global monetary policies.
Comparis forecasts that interest rates for medium and long-term fixed-rate mortgages will move sideways until year-end. The expected range for ten-year fixed-rate mortgages is 2.05% to 2.40%, for five-year fixed-rate mortgages 2.00% to 2.35%, and for 15-year mortgages 2.25% to 2.60%.
Saron mortgages became cheaper following the SNB’s rate cut, halting the upward trend in average mortgage rates. The mortgage reference rate remained at 1.75% as of early June.
“With the March rate hike, it’s unlikely the reference rate will rise significantly by year-end,” Renkert noted. Future rate movements will depend on price trends, further SNB hikes, and mortgage rate terms.
The SNB will decide on further interest rate moves next week (June 20).
©Keystone/SDA
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