Mortgage rates have fallen over the past three months, according to an analysis by financial services portal Moneypark, a subsidiary of Helvetia, which expects a further cut in the key interest rate by the Swiss National Bank (SNB) at its meeting on Thursday.
From July to the end of September, fixed-rate mortgages lost about 50 basis points (bps) across all tenors, the publication indicates. The Saron rate, meanwhile, fell by 23 bps to 2.13% on average.
A two-year fixed-rate mortgage was trading at 1.75%, compared to 1.76% for a five-year term and 1.94% over ten years.
After banks increased their margins at the beginning of the year, mortgage offers are becoming less attractive, the study explains. Some non-banking institutions have done the same, ‘which has slightly reduced competition between providers compared to the first quarter’.
In the short and medium term, mortgages are likely to remain attractive at the end of the year, according to the mortgage providers surveyed, who see buying as less expensive than renting. Longer maturities could still see an increase.
For the first quarter of 2025, Moneypark predicts ‘rather stable’ interest rates.
A further 25 bp cut in the key interest rate at the next SNB meeting is expected by mortgage lenders. This would be the third consecutive cut after those in March and June.
/ATS
#Swiss
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