2023-09-01 06:24:09
The reference interest rate remains at 1.5 percent for the time being
Good news for tenants: the hypo reference interest rate will not continue to rise – at least for the time being.
According to the Federal Housing Office (BWO), the reference interest rate remains constant at 1.5 percent.
Foto: Steffen Schmidt (Keystone)
The reference interest rate for residential rents remains constant at 1.5 percent. At the end of 2023 or beginning of 2024, however, the next rate hike could be imminent. According to a statement on Friday, the Federal Housing Office (BWO) will leave the mortgage reference interest rate constant at 1.5 percent as of the beginning of September. At the previous interest rate decision in June, it was raised by 0.25 percentage points.
When determining the reference rate, the BWO relies on the quarterly average interest rate for domestic mortgage claims from Swiss banks. According to the BWO, this rose to 1.59 from 1.44 percent compared to the previous quarter. It is thus only slightly below the threshold for the next rate hike.
According to the BWO, an increase is indicated if the average rate calculated by the Swiss National Bank (SNB) rises to over 1.62 percent. The next publication of the reference rate is planned for early December 2023.
The next rate hike became apparent
The reference interest rate was introduced in autumn 2008 at a value of 3.5 percent. Since then, it has steadily declined and has remained at a low of 1.25 percent for a long time. In June of this year it rose again for the first time. The reason for this was the turnaround in interest rates initiated by the SNB.
Experts are already expecting the next rate hike with the next decision in December of this year. Then rents will also rise again for many tenants. After an increase in the reference interest rate of 0.25 percent, landlords are allowed to increase the rent by 3 percent.
The experts also agree that after the interest rate hike to 1.75 percent, the end of the road has not been reached. Safra Sarasin expects another one in December 2024, Raiffeisen also at the end of 2024 or March 2025 at the latest, UBS and ZKB only in the course of 2025. However, this forecast only applies if the SNB only increases its key interest rate once more, stressed UBS- Expert Claudio Saputelli.
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