Rise in interest rates results in shorter financing terms
The rise in interest rates cannot put the brakes on real estate prices. On the other hand, the terms of mortgage financing are falling. This is the conclusion reached by Pricehubble and Moneypark in their current Financing and Real Estate Update (FIMU).
The average term of fixed-rate mortgages concluded fell by around one year compared with the previous half-year to eight and a half years. Ten-year fixed-rate mortgages were concluded around 30 basis points more expensive than in the previous half-year, while Saron mortgages experienced no price increase. Accordingly, ten-year and longer-duration fixed-rate mortgages have lost ground, while shorter maturities have gained. However, with just over half of the volume brokered, the ten-year remains the most popular term.
In French-speaking Switzerland, pension funds recorded a small increase at the expense of banks. In German-speaking Switzerland, they were also able to increase their share of brokered volume, although not as strongly as the insurance companies. The last time the latter had a higher share across Switzerland was two years ago than in the first half of this year. Compared with the previous half-year, banks were again selected somewhat less frequently. They increased their prices more than insurance companies and pension funds, which do not have to refinance themselves on the capital market, and thus lost out on brokered volume. However, with a two-thirds share of brokered volume, they remain the first choice. (aw)
