Mortgage rates barely changed after the surprise mid-March cut in the main rate by the Swiss National Bank (SNB). Real estate loans based on Saron, however, are losing momentum, as they are still too expensive.
On March 21, the SNB lowered its key rate to 1.5%, compared to 1.75% previously, breaking with the monetary status quo seen since September 2023.
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In mid-April, a three-year fixed mortgage was trading at an indicative rate of 2.13%, compared to 2.08% at the last rate at the end of December, financial comparison portal Comparis.ch said on Thursday. For a period of five years, the rate was 2.15%, after 2.10%.
For the longer maturities, the trend was similar, with a ten-year mortgage benefiting on average from a rate of 2.28% (2.22%) and 2.39% (2.32%) for a period over 15 years.
“Fixed mortgage rates fell already at the end of last year, as major rate cuts were expected on the market for 2024,” said Dirk Renkert, currency expert at Comparis.ch.
On March 21, the SNB lowered its key rate to 1.5%, compared to 1.75% previously, breaking with the monetary status quo seen since September 2023.
Demand for Saron mortgages, however, fell in the first quarter. A year ago, almost a quarter of the loans were issued with this product, they represent only 3% today. Because despite the decline in rates, Saron mortgages are still more expensive than fixed rate mortgages, the portal recalled.
“At least one, or even two, rate cuts are needed before Saron mortgages catch up to fixed rate mortgages,” said Mr. Renkert.
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2024-04-18 09:03:01
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