Previous post Next post

Swiss ten-year fixed mortgage rates halved since 2022 peak

Swiss ten-year fixed mortgage rates halved since 2022 peak
Ten-year fixed mortgage rates almost halved Keystone-SDA

Interest rate cuts by the Swiss National Bank (SNB) have halved the cost of servicing 10-year fixed mortgages compared to 2022 peaks, according to online comparison platform Comparis.

+ Get the most important news from Switzerland in your inbox

In the third quarter, the average ten-year rates calculated by Comparis fell within the 1.5%-2.0% range for fixed mortgages and between 1.6% and 2.0% for Saron-based loans, according to its report published on Thursday.

This relatively low level has led to strong demand, with 72% of those surveyed who have taken out a home loan choosing a ten-year fixed-rate mortgage, compared with 40-50% in the previous two quarters. The proportion of medium-term mortgages – i.e. four to six years – halved over three months to 14%. Three-year mortgages, including Saron, were reduced to a mere 7%, compared with 20% previously.

Despite the SNB’s rate cuts, fixed-rate mortgages remain cheaper than their Saron-based counterparts, but negotiating margins have changed: “The market’s expectation of a further fall in interest rates has had a positive effect on fixed-rate mortgage conditions since June, with rates falling sharply,” notes Dirk Renkert, Comparis money specialist, quoted in the press release.

Downward trend

The downward trend in indicative ten-year mortgage rates has been uninterrupted since June. At the end of the third quarter, they stood at 1.81%, down 0.33 percentage points on the end of June. For five-year rates, Comparis reached 1.68%, down 0.36 percentage points over three months. At the beginning of January, these two indicative rates stood at 2.26% and 2.13% respectively.

The yield on ten-year Swiss government bonds stood at 0.41% at the end of September, down 0.25 percentage points since the start of the year, according to the online comparison service.

In September, the SNB cut its key interest rate by 0.25 percentage points to 1%, the third consecutive reduction of this magnitude.

The major central banks are also following the path of monetary easing, the US Federal Reserve having “struck a blow” by lowering its rate by 0.50 points and now targeting 4.75-5%, recalls the press release. The European Central Bank set its key rate at 3.5%, following a 0.25% cut.

Translated from French by DeepL/mga

This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles. You can find them here

If you want to know more about how we work, have a look here, and if you have feedback on this news story please write to [email protected].

Swiss ten-year fixed mortgage rates halved since 2022 peak

More

GESDA takes a new step towards a global audience

This content was published on The Geneva Science and Diplomacy Anticipator (GESDA) is embarking on a new stage to confront the global public with the scientific challenges of the future.

Read more: GESDA takes a new step towards a global audience
Full story here Are you the author?
About Swissinfo
Swissinfo
SWI swissinfo.ch – the international service of the Swiss Broadcasting Corporation (SBC). Since 1999, swissinfo.ch has fulfilled the federal government’s mandate to distribute information about Switzerland internationally, supplementing the online offerings of the radio and television stations of the SBC. Today, the international service is directed above all at an international audience interested in Switzerland, as well as at Swiss citizens living abroad.
Previous post See more for 3.) Swissinfo Business and Economy Next post
Tags: ,

Permanent link to this article: https://snbchf.com/2024/10/swiss-year-fixed-mortgage-rates-halved-since-2022-peak/

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.