Inflation rates are on the decline. This has sparked speculation in the financial markets about possible interest rate cuts by central banks.
According to Comparis, fixed-rate mortgages in Switzerland are unlikely to become cheaper in 2024. -Keystone
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the essentials in brief
- Comparis ventures a forecast for the development of interest rates on fixed-rate mortgages.
- The comparison service does not see any major changes in the short term for the time being.
Just a few days before the Swiss National Bank’s (SNB) interest rate decision, Comparis is now making a forecast for the development of interest rates on fixed-rate mortgages in the coming year. Despite sharply declining swap rates – these are decisive for the conditions of fixed-rate mortgages – the comparison service expects medium and long-term mortgage interest rates to only move sideways with a slight downward trend next year, according to a forecast from Tuesday.
And in the short term, Comparis is not expecting any major changes for the time being. Specifically, Comparis expects five-year fixed-rate mortgages in a range of 1.80 to 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 percent 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 put constant pressure on inflation. This limits the SNB’s leeway. “It is therefore too early to give the all-clear,” says Comparis.
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2023-12-12 08:43:33
#Mortgages #cheaper
