Update — 20 July 2026: the CNB raised its two-week repo rate by 0.25 percentage points to 3.75%, effective from 19 June. The original January topic should therefore be read as a retrospective, not as a current forecast of further rate cuts.
What was visible at the start of the year
This article first appeared in January 2026, when buyers were largely asking whether mortgages would continue to become cheaper. We now have a clearer data trail: the Swiss Life Hypoindex recorded an average advertised rate of 4.53% in January and 4.52% in February. March returned to 4.53%.
January was therefore part of a period in which advertised rates barely moved. It was tempting to interpret that stability as a pause before another decline. The following months showed why a property decision should not depend on a single forecast.
April marked the reversal
The Hypoindex rose to 4.58% in April. That began a run of four consecutive monthly increases, taking the average advertised rate to 5.32% in July. The July figure returned the index to its November 2024 level.
The range of bank offers changed as well. Six lenders raised rates in June and sub-5% mortgages almost disappeared. Only Moneta Money Bank and Fio banka remained below that threshold. Partners Banka moved its three- and five-year fixed offers to 5.69%.
The CNB's June decision
The CNB raised the two-week repo rate by 0.25 percentage points to 3.75%, effective from 19 June 2026. The discount rate stands at 2.75% and the Lombard rate at 4.75%. The Bank Board's next monetary-policy meeting is scheduled for 6 August 2026.
This shifted a market narrative that had focused on falling rates in January. It does not mean that every mortgage rate rose by exactly the same amount on exactly the same day. Banks had already priced in much of the June increase.
Why the repo rate is not the mortgage rate
Mortgage pricing does not depend only on the current repo rate. Lenders also monitor interest-rate swaps and market expectations for inflation. Geopolitical tension in the Middle East has influenced those expectations in 2026.
Advertised rates can therefore change before a CNB meeting, and individual lenders can react differently. The repo rate remains an important signal for monetary conditions, but it is not a direct mortgage price list.
What to take from January's perspective today
For buyers, the central lesson is not to postpone an entire plan solely because finance might become cheaper. A purchase should work with the rate that a lender is actually offering today. The price, repayment, running costs and financial buffer belong in one combined budget.
Owners approaching the end of a fixed period should compare concrete offers and prepare for a potentially higher payment. Sellers should expect mortgage-funded buyers to examine the price, technical condition and monthly outgoings more closely.
An outlook without false certainty
The 6 August meeting is the next important marker, but it cannot guarantee a particular direction for mortgage offers. Markets may price expectations in advance, while lenders adjust rates in response to several inputs.
Seen from July, the January article is mainly a reminder of how quickly the interest-rate environment can change. Rather than trying to guess the CNB's next move, it is safer to choose a property and financing structure that still make sense without an immediate fall in rates.
Sources: CNB, Swiss Life Hypoindex, Hypoindex.cz.
