July Hypoindex: a fourth consecutive increase
The average advertised mortgage rate reached 5.32% in July 2026, according to the Swiss Life Hypoindex. This was the fourth monthly increase in a row and a return to the level last seen in November 2024. Sub-5% mortgages have almost disappeared from lenders' published offers.
The path through 2026 shows how quickly conditions turned. The index stood at 4.53% in January, 4.52% in February, 4.53% in March and 4.58% in April. April proved to be the turning point, followed by further increases to July's 5.32%.
What changed in lenders' offers
Six banks raised their mortgage rates in June. Only Moneta Money Bank and Fio banka remained below 5%. At Partners Banka, both the three- and five-year fixed rates stand at 5.69%.
These figures provide a useful market snapshot, not an automatic rate for every borrower. The final offer depends on the loan, the property value, the applicant's equity and the lender's other conditions. For an actual purchase, a personalised offer is more useful than the lowest number in an advertisement.
Why mortgages became more expensive
There is no single explanation for the reversal. Lenders use interest-rate swaps and market expectations for inflation when pricing longer fixed periods. Geopolitical tension in the Middle East has added uncertainty. The Czech National Bank also raised its two-week repo rate by 0.25 percentage points to 3.75%, effective from 19 June.
Banks had already priced in much of that decision. This is why advertised mortgage rates were moving before the CNB announcement; they do not have to change on the same date or by the same amount as the repo rate.
Buying versus renting: compare more than two monthly figures
Higher rates naturally raise the question of whether to buy now or remain a tenant. Comparing only the mortgage repayment with the rent, however, misses important parts of both choices. A repayment is only one component of ownership costs, while the monthly rent is not the only benefit or cost of renting.
Compare:
Renting may be the sounder choice for someone who needs mobility or would exhaust all savings by buying. Ownership may suit a household with a long-term plan, a sufficient buffer and a property that remains affordable at today's rate.
A resilience test for the buyer's budget
Begin with a concrete finance offer. Add expected running costs and a realistic reserve to the repayment. The plan should work without assuming that rates will soon fall or that every unexpected repair can be funded with more debt.
Review the property documents as well. The owners' association repair fund and planned works, the building's energy performance and the condition of the flat can matter as much to the long-term budget as the difference between two mortgage quotes.
If you have already found the right flat
A suitable home does not have to be rejected automatically because headlines say rates are above 5%. It is sensible, however, to make the next step conditional on verified finance and to avoid commitments that rely on the most optimistic outcome.
Compare lenders' offers together with their attached conditions, understand the fixed period and calculate what remains after all outgoings. If the figures do not leave a safe buffer, adjust the target price or property requirements rather than relying on a rapid rate reversal.
Decide without trying to predict the future
The July Hypoindex confirms that the period of automatically falling mortgage rates has ended. It does not say that buying is always wrong or renting always right. The real test is whether a particular option works under today's conditions while leaving the household enough financial room.
A good decision does not require a perfect interest-rate forecast. It requires a realistic property price, a verified bank offer, a clear time horizon and a reserve for the things no forecast can capture.
Sources: Swiss Life Hypoindex, Hypoindex.cz, CNB.
