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Various central banks around the world – including the Swiss National Bank – have raised their key interest rates in recent weeks, some of them surprisingly sharply. Two experts from the Zürcher Kantonalbank recently explained in a detailed article what this means for the mortgage market and what homeowners should watch out for.

Demand for residential property remains robust for the time being despite higher interest rates, writes real estate valuation company IAZI AG in its latest release on the development of real estate prices in Switzerland in the second quarter. According to IAZI, prices paid on the market for owner-occupied homes continued to rise slightly in Q2 2022 at 0.7%.

In its long-term interest rate forecast for the Saron, the UBS expects interest rates for federal bonds and mortgages to tend sideways in the coming quarters without a clear trend. However, it points out that in these uncertain times – for central banks and investors – high fluctuations in interest rates must still be expected.