With the start of the Ukraine war, interest rates for fixed-rate mortgages initially fell significantly. Interest rates have been rising sharply for about a week, according to comparison service Moneyland on Wednesday.
Since the beginning of the month, the median interest rate for five-year mortgages rose 0.15 percentage points to 1.35 percent. The average interest rate for ten-year mortgages is 0.18 percentage points higher at 1.73 percent. According to Moneyland, it’s the highest reading for 10-year mortgages since 2018, and 5-year mortgages aren’t far from that peak either.
Overall, interest rates have risen significantly since the beginning of the year. At the beginning of 2022, five-year mortgages were still around 1 percent, i.e. more than 0.3 percentage points lower. Ten-year mortgages even jumped more than 0.5 percentage points over the same period.
“The war in Ukraine is fueling the already high inflation, which speaks for a tightening of monetary policy or interest rate hikes,” says Moneyland analyst Felix Oeschger. He therefore expects a rate hike in Switzerland soon. This will continue to drive up mortgage interest rates.
(AWP)
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