The decline in fixed-rate mortgage interest rates in Switzerland reflects expectations of further key interest rate cuts.
The average interest rates are derived from around 30 mortgage institutions, and the data reveals a corresponding decrease in banks' refinancing costs.
Inflation is decreasing at a faster pace than initially anticipated, leading to a significant drop in benchmark interest rates.
The Swiss National Bank has reduced the key interest rate in three increments since March and is expected to continue cutting rates.
Experts forecast that target interest rates for mortgages will range between 1.45% and 1.65% by the end of June 2025.
due to a shortage of supply, which continues to drive up rents.
The interplay between mortgage rates, inflation, and housing supply will be critical for the Swiss economy.