Fixed-rate mortgages fall to lowest level since 2022
Published: Wednesday, Oct 30th 2024, 12:10
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Interest rates in Switzerland have been falling significantly again for some time. Fixed-rate mortgages have even fallen to their lowest level since 2022.
According to the moneyland.ch mortgage index, ten-year fixed-rate mortgages currently cost an average of 1.74 percent, five-year mortgages 1.58 percent and two-year mortgages 1.52 percent.
By way of comparison, ten-year fixed-rate mortgages peaked at 3.35 percent a good two years ago. The values have therefore almost halved since then, as the financial portal writes in a press release on Wednesday.
Saron could become cheaper again
According to the index, Saron mortgages currently cost an average of 1.90 percent and are therefore still more expensive than fixed-rate mortgages. However, if the SNB loosens the monetary reins further, Saron mortgages could become cheaper than fixed-rate mortgages again in the coming quarters.
According to Moneyland, the expected interest rate cuts by the SNB are largely priced into the interest rates for fixed-rate mortgages. The situation is different for Saron mortgages: They do not reflect expectations, but only react to the SNB's actual interest rate moves.
Most market participants and economists are currently assuming that the SNB will lower the key interest rate by 0.25 percentage points at both the December and March meetings.
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