Fixed-rate mortgages: further decline in interest rates in sight - experts analyze developments in 2024

Fixed-rate mortgages: further decline in interest rates in sight - experts analyze developments in 2024

According to a report from www.fuw.ch,

Fixed-rate mortgage interest rates have reached new lows, leading to a sharp decline in mortgage rates. This means that fixed-rate mortgages are now cheaper than Saron mortgages. Experts expect only a sideways movement with interest rates falling slightly in 2024. However, this trend could change if the economy weakens significantly or there are unexpected surges in inflation.

According to a survey, 90% of respondents expect interest rates to remain unchanged at 1.75 percent in the upcoming key interest rate decision by the Swiss National Bank (SNB). Those surveyed assume that interest rates for Saron mortgages will remain at current levels. For fixed-rate mortgages, interest rates for shorter terms of up to five years are expected to remain the same until the next interest rate decision in March. For longer terms, higher fluctuations and generally lower interest rates are expected.

Experts expect medium and long-term mortgage interest rates to move sideways with a slight downward trend in 2024. By the end of 2024, five-year fixed-rate mortgages are expected to be in a range of 1.80 to 2.25%, while ten-year mortgages are expected to be between 2.00 and 2.40%.

However, there is a high degree of uncertainty regarding further interest rate developments. If, contrary to expectations, the economy weakens significantly or there are unexpected surges in inflation, this could lead to changes in monetary policy. The monetary policy of other central banks will also have an influence on interest rate developments.

It is therefore important to continue to closely monitor developments in the real estate market and the monetary policy of central banks in order to make informed decisions in the area of ​​fixed-rate mortgages.