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The SNB maintains the reference rate of 1.75%: what changes are coming?

In today's monetary policy assessment, the Swiss National Bank (SNB) decided to leave the key interest rate unchanged at 1.75%. A ray of hope for current and future homeowners, who can already expect mortgage rates to decline.

Mortgage Rate, Reference Rate, Inflation:

In the latest monetary policy assessment, the Swiss National Bank (SNB) decided to leave the reference interest rate unchanged at 1.75%. At a time of financial uncertainty, this decision reflects the complex balance the SNB is aiming for in its monetary policy. What does the continued stability of the reference rate at the current level mean for property owners and buyers?

Constant interest rates for greater planning security

Constant, although currently high, interest rates mean that property owners have some planning security in terms of budgeting and long-term financial obligations, such as a mortgage. For property buyers, however, the stability offers a good opportunity to better evaluate financing options for entering the market. The downward trend in mortgage rates has been increasing for several months and has now reached a level last seen in the summer of 2022. It is currently possible to take out a 10-year fixed rate mortgage with an interest rate less than 1.8%.

For property owners, the easing of inflationary pressure means, contrary to previous forecasts, a certain stability. This could open up new opportunities, especially for those with an expiring mortgage. At the same time, according to the latest findings of the national consumer price index (LIK), some cost centers have unexpectedly collapsed. However, cost increases in the energy, transport and VAT sectors are expected as early as next year, which will probably reduce purchasing power again.

Inflation omparison Switzerland vs EU and USA

Comparison Switzerland vs EU and USA

As a country with a strong international network, Switzerland also pays particular attention to the development of the global economy. An international comparison shows that Switzerland is following a more conservative path than other global economic zones. While interest rates have risen to 4% in the Eurozone and 5.38% in the United States, Switzerland has taken a more cautious approach to raising interest rates. This financial strategy is also reflected in the inflation rate.

Switzerland has relatively moderate inflation compared to that of the EU (with a maximum of 11.5%) and that of the United States (with a maximum of 9.1%). While a real estate crisis looms in Germany due to rising financing and construction costs as well as new regulations, the real estate market in Switzerland remains solid despite global challenges.

Real estate supply and demand in Switzerland:


The SNB's decision to keep the reference rate at 1.75% is a positive sign for homeowners and buyers. Even renowned economists have recently corrected previously gloomy forecasts for next year and already expect the first reduction in the key interest rate in the summer of next year. Until then the situation should remain stable. In the future, it will be essential to continue monitoring and analyzing interest rate trends to make informed decisions. A comprehensive understanding of local market conditions is also critical to sales success in the current market situation.


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