Mortgage interest rates in Switzerland are falling again. In March, the providers observed by “Finanz und Wirtschaft” reduced the standard rates for short and medium-term maturities: two-year fixed-rate mortgages cost an average of 0.92% per year, which is 8 basis points (bp) less than in February. The three-year lending rate was cut 9bps to 1.08% and five-year mortgages are averaging 1.29%. They are thus 6 bp cheaper than in the previous month.
But the joy is limited. Because long-term mortgage interest rates continue to rise. They are now trading at 1.68%, which is another 5 bp more than four weeks ago. They have thus increased in price by an average of 55 bp this year. That corresponds to more than two rate hikes by the Swiss National Bank.
–
