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According to the study, there are signs of stabilization for fixed-rate mortgages

Central banks raise interest rates in response to inflation. This has consequences for mortgage interest rates.

After the recent significant increase in fixed-rate mortgages, the situation has stabilized at a higher level, according to a study by Moneypark. – sda – KEYSTONE/CHRISTIAN BEUTLER

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the essentials in brief

  • According to the study, there are signs of stabilization for fixed-rate mortgages at a higher level.
  • The average reference rate for ten-year fixed-rate mortgages is currently 2.85%.
  • According to Moneypark, the big jumps in interest rates could be over.

Central banks, including the SNB, have raised interest rates to deal with the rapidly rising inflation. This has had an impact on mortgage interest rates. However, according to a study, fixed-rate mortgages are now stabilizing at a higher level.

After interest rates rose by 1.5 percent in six months, there are signs that interest rates for fixed-rate mortgages are stabilizing at the current level, according to a Moneypark statement on Thursday. The average reference rate for ten-year fixed-rate mortgages is currently 2.85 percent.

Moneypark justifies this opinion with the fact that the short- and medium-term mortgage interest rates increased more in the second quarter than the long-term ones. This is a sign that the large jumps in interest rates may be over. Mortgage rates rose by around 50 basis points (bp) in the first quarter and by as much as 100 bp in the second quarter that has just ended.

Mortgage rates could gain 20 to 30 basis points

The key interest rate hikes already announced by the national banks are likely to be priced in to a large extent in the current mortgage interest rates, the statement goes on to say. However, should inflation continue to rise, mortgage interest rates could well increase by another 20 to 30 basis points.

Anyone who relies on Saron mortgages has so far been spared the rise in interest rates, it is said. As long as the key interest rate in Switzerland is not above zero percent, nothing will change. However, since the SNB’s interest rate hike by 50 bp to -0.25 percent two weeks ago, only 25 bp were missing for a key interest rate of zero percent. From then on, any further interest rate hike would have an impact on the Saron.

More on the subject:

Inflation
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