Swiss National Bank and Inflation: Effects on Mortgage Interest Rates and Real Estate Valuation

Measures taken by the SNB to fight inflation:

Today's interest rate hike is already the fifth step taken by the SNB to curb rising inflation. The SNB began to tighten the interest rate screw as early as a year ago, and has been consistently focusing on rate hikes ever since. Although inflation has fallen since February, it is still above the SNB's target range of 0 to 2 percent, most recently at 2.2 percent in May. As a result, experts have largely expected another rate hike.

Impact on the mortgage rate:

The SNB's decisions have a direct impact on the mortgage rate in Switzerland. As key interest rates rise, it is likely that lending institutions will adjust their mortgage rates. For this reason, it is now advisable to review your own mortgage interest rate and possibly consider making adjustments. A higher mortgage rate can result in higher monthly charges in the long run, so it is important to be aware of current terms and take advantage of more favorable offers.

Property valuation:

With the rise in prime interest rates and the possibility of further rate hikes, it's also important to evaluate your property. Conditions in the real estate market could change. Therefore, it makes sense to determine the current value of one's property in order to gain a better understanding of the financial situation and evaluate possible courses of action. A professional real estate appraisal helps determine the actual market value and make informed decisions.

Conclusion:

The Swiss National Bank's measures to combat inflation have a direct impact on mortgage interest rates and real estate valuation. It is advisable to review your own mortgage interest rate and benefit from more favorable conditions. A regular valuation of the property makes it possible to react to market changes. A sound valuation and adjustment of the mortgage interest rate can create a solid financial basis in the long term. Visit https://www.caveo.ch/calculators to learn more about mortgage interest rate reviews and property valuations and to optimize your financial situation.