Tuesday, March 28, 2023

This is how high the mortgage interest rates will climb in 2023

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Homeowners must expect rising interest rates in 2023. Own home in Zullwil SO.


Dorothea VollenweiderEditor Economics

The days of ultra-low mortgage interest rates are a thing of the past. Buying is again more expensive than renting in many parts of Switzerland. Will the yield curve continue to point higher in 2023?

There’s a lot to be said for it. Especially since it is expected that the national banks will make further interest rate hikes in 2023. However, the curve will not point quite as steeply upwards as in the last 12 months.

The SNB interest rate rises again

“In 2023, most central banks – including the Swiss National Bank – are likely to reach their target level for key interest rates and then pause for the time being,” says Fredy Hasenmaile (55), real estate expert at Credit Suisse.

“We expect the SNB interest rate to rise to 1.5 percent by March 2023”Ursina Kubli (43), senior real estate expert at ZKB

“We expect the SNB key interest rate to rise to 1.5 percent by March 2023,” says Ursina Kubli (43), senior real estate expert at Zürcher Kantonalbank. This is currently 1 percent.

Interest rate hikes for mortgages abating

Because the markets have already anticipated some rate hikes, both CS and ZKB expect only a slight increase in long-term mortgages in 2023.

However, the Saron mortgages will keep pace with the rate hikes by the National Bank. “The Saron mortgages will experience the greatest increase at the short end of the yield curve,” says Hasenmaile.

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