The mortgage rate decline in Switzerland has stimulated mortgage lending, thus pushing housing prices up. The country’s financial authorities are concerned about the situation. They afraid of another price bubble in the Swiss housing market, which may lead to a mortgage crisis.
According to the Swiss Federal Department of Finance, it is necessary to reduce the mortgage lending through increasing the capital requirements for lending institutions. These measures have already been backed by the Swiss government and national bank.
According to the SBA, such steps can result in heavier costs for banks and other lending institutions. Moreover, they say, this may affect the country’s real economy. The SBA offers to increase the deposit money requirements instead. Now it is required to pay 20% of the total cost of a building.
In the meantime, the Swiss franc has suspended its strengthening. A(C )/C, a bearish sub-wave, is over. According to the Department of Masterforex-V Trading System , the current upswing may grow into wave A/B on condition that the price breaks the MF pivot 0.9226 (supported by the AO).A break below 0.9088 will trigger the forming of sub-wave C(C ). The closest support is 0.9065.
