Anyone who buys an apartment or house does not have to take out a more expensive mortgage despite the higher interest rates. (Icon image)
Switzerland is making more progress in the Corona crisis – more and more people are being vaccinated every day. The epidemic is not over yet – the current development of the corona continues to affect mortgage rates. Long-term capital market rates rose. But this has not yet had an effect on long-term mortgage rates in Switzerland, comparison service Moneypark wrote in a statement on Wednesday.
In general, the average target rate remains stable according to the information. However, there are significant differences between the more than 150 banks, insurance companies and pension funds examined. The 10-year target rate is precisely one basis point above the previous month at 1.26 per cent. And according to Moneypark, the cheapest bid fell four basis points to 0.70 percent.
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As in March, the recent increase in swaps will likely be absorbed at the expense of margin, according to the data. The background to this is the increasing competition. According to Moneypark, new providers are likely to enter this market in the future due to the extremely low interest rate environment and thus stimulate competition.
Also, the rise in interest rates in the capital market is not sustainable. Rather, it should be viewed as a slight up and down. Even after the pandemic is overcome, the message continues, interest rates are not expected to continue to rise.
Given the onset of the economic boom, especially in the USA, strong inflation is expected to temporarily occur. In Europe and Switzerland, however, this development is likely to occur to a lesser extent. (SDA)
Because of the corona shock: Corona shock on the mortgage market?(01:22)
Posted: 05/05/2021 8:09 am
Last update: May 6, 2021, 7:39 am
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