Mortgage rates are likely to decline further

House purchase more affordable – mortgage rates are expected to continue to increase corona sink to offset the financial markets in a panic, and caused the mortgage rates for a long time. This is now: interest rates fall again, probably even stronger than ever before.Maren Meyer8 Kommentare8″the realization of The home ownership dream is, however, in most cases, a long-running and emotional decision, which does not depend on short-term fluctuations in mortgage interest rates,” says money-Park-in-chief Stefan Heitmann. Photo: Urs Jaudas

The house purchase is again more favorable. Because the interest rates on long-term fixed-rate mortgages drop again and move back slowly to the record low level of last August. According to the VZ-mortgage center the average rate for a 10-year fixed-rate mortgage was at 1.04 percent. Yesterday, Monday, it was at 1.15 percent. At mortgage providers, money Park, the 10-year fixed-rate mortgage can be completed from the cheapest supplier currently to 0.64 percent.

After a long Phase in which the mortgage rates in the descent were, they rose in March, suddenly at a low level easily. In April, the VZ-mortgage center collected average interest rate for 10 lag year fixed mortgage even at 1.25 percent. The reasons for the increase were in the panic that prevailed due to the Corona-crisis in the financial markets. Even state bonds were sold, although this is deemed to be safe.

But investors sought safety in cash. In Switzerland, the impact on interest rates of Federal government bonds: they increased. And since they are the basis for mortgage rates, with the increased this same.

interest rates could be zero

“Currently, of the countries around the world aid packages of hundreds of billions of laced, and the Central banks will cut interest rates further, so that the economy uses these funds for investments. This automatically affects interest rates and thus mortgage rates,” said Lawrence Heim, chief of the VZ-mortgage centre. The shows effect. Now, therefore, the mortgage rates back down again.

that’s not enough: “It is expected that the interest rates on all maturities,” says home. This is because the growing debt is expressed on the level of interest rates. And that could tend in the case of the mortgages, even against zero. Prospects as in Denmark, where there are at the conclusion of a mortgage-thanks to negative interest rates equal to money, and not in this country but, probably, – the expert believes.

“although There are fewer prospective buyers per property, but we have still the same number of degrees as before Corona.”

Lorenz home, head of the mortgage center

in Spite of the Corona-panic does not feel any decline in real estate sales. And the prices are not expected to decrease in the next time. “Although there are fewer prospective buyers per property, but at the advice of the new advertisers we have still the same number of degrees as before, the Corona,” says home.

In the case of money the Park you felt the between February to may, a slight decline in the demand for new mortgages, however, considerably milder than would have been expected. The decline in money Park-Chef Stefan Heitmann back, especially on the Lockdown, and the delayed processes in the mortgage providers and in part from inability to tour dates.

a Direct impact on purchase decisions, the slight increase in mortgage rates is not had, according to Heitmann but. But who could take the time, a renewed Decline of interest to be seen to have done this. “The realization of the home ownership dream is, however, in most cases, a long-running and emotional decision, which does not depend on short-term fluctuations in mortgage interest rates,” said Heitmann.

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