2024-01-04 16:05:00
The decline in inflation and the global economic slowdown are having an impact on mortgage rates. They have been falling sharply in Switzerland since last month, across all durations, according to the financial comparison portal Comparis.ch. In Switzerland, the average interest rate for a mortgage loan is now 2.08% over three years, 2.1% over five years and 2.22% over ten years. It rose to 3% for all categories last year.
What to do now ?
This decline is also observed at the cantonal branches of the country’s banks. Now the question that arises, if you have to sign your mortgage contract or renew it, is knowing when to do it. Should you run to your bank first thing tomorrow morning or speculate for a few more weeks or even months to obtain an even more advantageous rate? “For the person who can afford to wait, it is likely that in a few months the rates will be even slightly lower than now,” estimates Calin Ionescu, lecturer at the Haute Ecole Arc de Gestion in Neuchâtel. “However, it would be more interesting to think about signing contracts over relatively long periods,” he insists.
A less dark future
Banking on long-term stability rather than hoping for a significant saving quickly is the advice of the experts. These more advantageous mortgage rates are due in particular to a decline in inflation. A reality made possible by falling energy costs. For Calin Ionescu, however, the situation remains “very unstable”. Today’s reality is not necessarily that of tomorrow, but the drop in mortgage rates is an encouraging signal for our wallets. “We can expect other prices to continue to fall,” says Calin Ionescu.
All this of course remains conditional on international geopolitical events. However, we will see more clearly with the inflation forecast which will be announced during the next monetary policy decision in March. /ATS-dpi
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