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Key facts:
- The SNB will leave the key interest rate unchanged at 0% on December 11, 2025 due to low inflation and the stable exchange rate situation.
- Mortgage interest rates remain at a low, sideways level – with no upward pressure.
- A stable environment is confirmed for the real estate market: constant prices, good sales opportunities and persistently high demand in many regions.
On December 11, 2025, the Swiss National Bank (SNB) decided to leave the key interest rate unchanged at 0%. The move was widely expected, as inflation, the economy and the exchange rate clearly point to stability. For the real estate market, this means continued predictable financing costs, a robust demand environment and stable price structures in many regions of Switzerland.
Why the SNB has confirmed the key interest rate at 0%
Inflation remains extremely low
At around 0.1%, inflation remains well below the SNB ‘s expectations. Although such low inflation would in principle create scope for further interest rate cuts, the SNB sees no need to do so due to the almost non-existent risk of deflation.
Price stability therefore allows the SNB to continue its course without further intervention.
Negative interest rates remain unlikely
SNB Chairman Martin Schlegel once again emphasized that a return to negative interest rates would have “a much higher hurdle” than cuts in the positive range due to the known side effects. The decision of December 11 clearly confirms this stance.
Stable franc reduces pressure to act
The Swiss franc remains stable against the euro over the course of the year. The ECB continues to maintain its interest rate differential to Switzerland, which means that there is no additional upward pressure. This eliminates a key reason for short-term interest rate adjustments.
Economy: moderate but stable development
Seco and KOF data show a robust picture of the Swiss economy:
- Constant employment
- Stable domestic demand
- Relaxation in exports after US tariff cuts
The SNB therefore sees no acute need to take countermeasures in terms of monetary policy.
Effects of the SNB decision on mortgages and interest rates
The confirmation of the key interest rate has a direct impact on the mortgage market and ensures a stable financing environment overall. This is particularly noticeable for SARON mortgages, which continue to be the most favorable segment and benefit directly from the SNB’s decision. There has also been a sideways trend in the area of fixed-rate mortgages for months: long-term capital market interest rates are only moving slightly and, according to Raiffeisen, interest rates are expected to remain stable in 2026. For owners and prospective buyers, this means one thing above all: significantly improved planning. The December decision confirms that short-term interest rate rises or new volatility are not to be expected.
What does the 0% key interest rate mean for the real estate market?
Demand for residential property continues to stabilize
After two rather subdued years (2023-2024), a clear trend emerges in 2025:
- higher search activity
- More stable financing costs
- Constant demand in growth regions
ZKB, UBS and Julius Baer expect a slight increase in transaction activity in 2026.
Price trends remain regionally differentiated
The SNB’s decision supports the price trend, which differs from region to region:
- Cities: continued high excess demand, price stability to slight increases
- Agglomerations: increasing attractiveness thanks to good accessibility
- Peripheral regions: broadly diversified market, stable to slightly positive development
There are no signs of a broad price correction.
Rental market remains under pressure
Vacancy rates in many cantons remain at historically low levels. The SNB decision does little to change the structural shortage:
- Asking rents continue to rise
- High immigration
- Below-average construction activity
The 0% interest rate therefore has a stabilizing but not a relaxing effect on the rental market.
Classification for owners, buyers and investors
For prospective buyers, the SNB’s decision creates an environment of stable financing costs, which improves long-term predictability and makes access to residential property more predictable. At the same time, competition for high-quality properties continues to increase, as many potential buyers see the stable interest rate situation as a good time to buy.
For owners the decision confirms a market environment with good sales conditions. The predictable interest rate trend increases certainty when making decisions, while valuations remain stable in many regions. This continues to create solid conditions for transactions, both in urban and suburban areas.
The yield profile remains attractive for investors. Rental growth continues to be a key driver of income, particularly in regions with structurally high demand and low vacancy rates. The unchanged 0% key interest rate also strengthens the investment focus on real estate, as alternative safe investments offer less attractive returns in comparison.
Conclusion: A decision that brings stability
With its decision on December 11, 2025, the SNB once again confirms its assessment: no need for action, no interest rate change. Switzerland starts 2026 with a high degree of monetary stability: a positive signal for mortgages, investments and the real estate market as a whole.
FAQ
Will mortgage rates rise or fall in 2026?
There are currently no signs of strong interest rate movements. Banks such as ZKB, UBS and Raiffeisen expect the environment to remain largely stable in 2026. Mortgage interest rates are therefore likely to remain in a narrow corridor – for both variable and long-term models.
How will the SNB’s December decision affect real estate prices?
The 0% key interest rate supports price stability. Demand remains high in cities and well-developed conurbations, which means that prices may remain stable or rise slightly. In peripheral regions, moderate movements are possible, but without a clear corrective trend.
What does the 0% key interest rate mean for owners planning to sell?
The decision strengthens the liquidity of potential buyers and maintains valuation certainty. As a result, sales opportunities remain good in many regions. Owners benefit from stable price levels and reliable demand .
When could the SNB adjust the key interest rate again in spring 2026?
A change is only to be expected in the event of a significant deviation in inflation, strong exchange rate pressure or a relevant economic change. At present, the data points to a longer period of stable interest rates. The SNB’s next update on the key interest rate will be on March 19, 2026.