The war in Ukraine will bring the economic recovery to a standstill, predicts MoneyPark in the latest economic and interest rate update from the fintech from Pfäffikon, which specializes in mortgages and real estate. According to him, capital market rates have already fallen significantly as a result of the outbreak of war. This development has also reached mortgage interest rates with a slight delay, writes MoneyPark.
Specifically, between Feb. 24 and March 8, the company observed a 6 to 8 basis point cut in fixed-rate mortgage rates. By contrast, mortgages based on the SARON reference interest rate (Swiss Average Rate Overnight) remained unchanged. MoneyPark expects further slight reductions in mortgage interest rates over the next few weeks.
“It is currently particularly important to follow the development of the capital and mortgage markets promptly,” says the update. In particular, MoneyPark anticipates that mortgage providers will launch temporary special offers “due to the intense competitive environment”.