The expected decrease in the benchmark mortgage rate is anticipated to bring relief to tenants facing rising rents.
The Federal Housing Office (FHA) is expected to announce the new rate, which could take effect as early as next week or potentially be delayed until March.
Economists from the Awp agency believe that the quarterly indicator will continue to decrease, following rate cuts by the Swiss National Bank (SNB).
The SNB has implemented three consecutive reductions to its guide rate, contributing to lower mortgage costs.
For tenants to benefit from this shift, the average mortgage interest rate must fall to a certain threshold.
However, it remains uncertain whether the latest SNB rate cut will be sufficient to achieve this benchmark by December.
The potential reduction in the benchmark interest rate has implications for renters.
If the reference interest rate decreases, landlords would be required to lower rents, although they can offset some inflation and overhead cost increases.
Not all landlords may voluntarily adjust rents, which could lead to tenants having to relocate to avoid unchanged rental costs.
The reference mortgage rate in Switzerland has experienced fluctuations since 2008.
Looking ahead, the reference rate is expected to stabilize, with no immediate further reductions anticipated.
The current economic landscape has placed additional pressure on tenants, and the dynamics between landlords and renters will be closely scrutinized as the benchmark mortgage rate potentially declines.
Both tenants and landlords will need to adapt to the evolving financial landscape.