Mortgage interest rates have fallen significantly: What financial experts recommend!

Mortgage interest rates have fallen significantly: What financial experts recommend!

According to a report by www.fuw.ch, mortgage interest rates in Switzerland are falling significantly. Property owners can rejoice as rates for fixed-rate mortgages have been reduced by an average of 17 basis points. For a mortgage worth CHF 1 million, this corresponds to an annual cost saving of CHF 1,700.

One reason for this decline is the change in sentiment on the financial markets due to weaker inflation in Switzerland. This has caused long-term bond yields to fall. As a result, it is expected that the National Bank will not raise the key interest rate, but will lower it significantly again in around six months.

Interestingly, there are currently very few differences between short- and long-term fixed-rate mortgages. Financing is normally more expensive the further into the future the repayment date is, but this is not the case at the moment. Average terms of around five years are currently the cheapest.

PostFinance offers the cheapest reference rates in the survey, while Zürcher Kantonalbank has the highest rates. The difference between the offers is around 60 basis points, reflecting the volatility in the interest rate markets and making it difficult for providers to set their prices.

This significant drop in mortgage rates has a positive impact on the real estate market by reducing financing costs for potential buyers and existing property owners. This could lead to an increase in demand for real estate and higher real estate prices. At the same time, however, this could also further fuel the housing bubble and potentially lead to inflated prices. It is therefore important to closely monitor market developments and keep an eye on the risk of a real estate bubble.