The economic environment remains volatile and difficult to predict. Yet a potential increase in inflation due to higher oil prices would still not be a reason for the SNB to raise the key interest rate from its current level of 0%. Therefore, we do not expect an interest rate hike in June and also consider an increase by the end of the year to be very unlikely.
Currently, interest rates for fixed-rate mortgages are stable compared to the previous month. Depending on the provider, ten-year mortgages can be concluded at interest rates between 1.70% and 2.10%.
What should you do if the bank wants to discuss refinancing early?
Interest rate developments are particularly relevant for people whose mortgage will expire in the near future. Banks often approach their clients months before expiry with offers for follow-up financing. In this context, clients are given the opportunity to lock in the interest rate for the upcoming refinancing early.
