Zurich (awp) – Average mortgage rates fell during March, following the advance in February. These rates are expected to stabilize at the current level while interest rates are also unlikely to increase sustainably, even after the pandemic is over, the mortgage brokerage platform Moneypark said on Wednesday.
The average mortgage rates of 150 banks, insurance companies and pension funds fell again after the sharp increase in February, across all maturities. The 5- and 10-year rates fell by five basis points, while the 2-year maturity fell by two points, the statement said.
“This means that the temporary interest rate hike in February 2021 has already been offset, at least for medium-term maturities,” says Moneypark. The rapid rise in capital market interest rates last month caused some nervousness. However, the green light from central banks, which announced that no hikes in key interest rates were planned, eased tensions.
Capital market interest rates were also very choppy during March, with large swings up and down, but they have stabilized.
The brokerage also notes that the range between the indicative rate and the best rate remains wide. Mortgage providers continue to struggle to gain customers and accept a lower margin than the previous month on the 10-year fixed rate mortgage.
“It therefore seems unlikely to us that we are at the start of a new era with durably higher prices and interest rates,” said the company. Once the pandemic is over, Moneypark, however, anticipates a sudden recovery, which should subside quickly.
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