Interest rates rise only a little
Since the beginning of January 2021, it has been observed how the interest on ten-year federal bonds has risen more and more. Are you from? 0.56 on? 0.43 higher, with US Treasuries behaving similarly. Their returns have also increased and have now reached over one percent. The "Confederation", as federal bonds are also called, is usually referred to as the most important driver of mortgage interest rates: as it rises, so do lending rates. But this cannot be observed at the moment, the average interest rate has increased from 1.05 to 1.06 percent, but that is a negligibly small increase. Experts see the overarching trend as decisive and this says that interest rates continue to fall, as they have for years.
The trend that interest rates continue to fall was recently interrupted by the Corona crisis, in between they rose slightly and reached average values of 1.15 percent. The trend now seems to be back to the 0.98 percent that was awarded before the crisis. Experts from the financial world suspect that one reason why mortgage rates will not rise is because they are expected to remain low for years. The governments have to provide huge sums of support money, the national debt is growing significantly. The experts see a connection here and assume that interest rates will remain low.
Providers react differently
However, individual providers have adjusted their interest rates, with the providers who have already charged higher interest rates, now rising even further. Providers with rather low interest rates, on the other hand, have not followed suit and have lowered their rates even further instead of increasing them. The cheapest is currently (as of February 2021) the Internet service hypoclick, which only requires 0.767 percent. The so-called shop window prices, however, require a very good credit rating. Anyone who arrives here with poor payment behavior and is not given a good credit rating will of course not be offered this interest rate.
The Bühler pension fund is only slightly more expensive, with a rate of 0.79 percent, and the BVK and the Swiss Post pension fund have also lowered their interest rates for mortgage loans. Raiffeisen Bank, on the other hand, has gone up with its interest rates for ten-year mortgages and is currently charging 1.35 percent. The offers of the Zuger Kantonalbank are similar.
So are the prospects
There is a long-term trend not only in terms of the weather, but also in mortgage loans, and it currently looks as if the low interest rate level will last for a long time. A lower interest rate than now is possible with some providers, but the experts do not determine how long this will be the case. It is quite conceivable that the current low interest rate environment will change, although noticeable interest rate hikes cannot be ruled out in the coming years. Nobody wants to commit themselves correctly because the influences, for example due to the Corona crisis, cannot currently be precisely weighed up.
Conclusion: interest rates on mortgage loans remain low
Nevertheless: Even if the current interest rates for mortgage loans are low and apparently still remain low, some providers are pulling slightly. If you want to take out a long-term mortgage now, you shouldn't hesitate too long, because the interest rates will not go much lower. At most, they will remain at their current level before they pick up again. It is also interesting that the interest rate differentials are very small, on average and based on the comparison of a two-year and a ten-year term. Finance experts therefore assume that someone who now takes out a ten-year mortgage will be better served than ever before and will have the greatest possible planning security.
