Interest rates for fixed-rate mortgages have fallen sharply recently
Published: Tuesday, Aug 20th 2024, 10:10
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Swiss long-term interest rates have only known one direction for a few weeks now: down. Ten-year fixed-rate mortgages are currently cheaper on average than they have been since March 2022.
According to a compilation by the internet comparison service Moneyland on Tuesday, the average interest rate for two-year fixed-rate mortgages is currently 1.81 percent, for five-year mortgages 1.79 percent and for ten-year mortgages 1.90 percent. This is a fall of around 50 basis points across all maturities compared to the beginning of June.
Just over a year ago (June 2023), 10-year fixed-rate mortgages still cost 3.04 percent. In other words, interest payments for such mortgages are now more than a third lower than they were then.
Saron (even) more expensive
Saron mortgages are currently slightly more expensive than fixed-rate mortgages at an average of 2.09 percent. However, as most market observers are currently assuming that the Swiss National Bank (SNB) will announce an interest rate cut of 0.25 percentage points at its September meeting, the Saron rate is likely to fall by this amount soon.
According to Moneyland, this would mean that Saron mortgages would be roughly the same price as fixed-rate mortgages, provided that interest rates for fixed-rate mortgages do not change in the meantime. However, this in turn is not unlikely due to the SNB scenario described above.
©Keystone/SDA
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