Interest rates for fixed-rate mortgages are once again well below 2 percent. A year ago, things were different: they were above 3 percent.
Interest rates for fixed-rate mortgages are falling again well below 2 percent. (Symbolic image) – keystone
For the past few weeks, Swiss long-term interest rates have only known one direction: downwards. Ten-year fixed-rate mortgages are currently cheaper on average than they have been since March 2022.
According to a compilation by the online 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 decrease of around 50 basis points across all maturities compared to the level at the beginning of June.
Just over a year ago (June 2023), 10-year fixed-rate mortgages cost as much as 3.04 percent. The interest payments for such mortgages are therefore more than a third lower today than they were then.
Interest rates for Saron mortgages are still above 2 percent
Saron mortgages are currently slightly more expensive than fixed-rate mortgages, averaging 2.09 percent. However, since most market observers currently assume that the Swiss National Bank (SNB) will announce a 0.25 percentage point interest rate cut at its September meeting, the Saron rate is likely to drop by the same amount soon.
This would mean that SARON mortgages would be about as expensive as fixed-rate mortgages, assuming the interest rates for fixed-rate mortgages do not change in the meantime, says Moneyland. However, this is not unlikely due to the SNB scenario described above.
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