____________ two biggest banks have cut their share of the domestic mortgage market as ultralow interest rates hit business models and worries grow about high property prices in the affluent local economy.
UBS and Credit Suisse together accounted for just 27.4 per cent of the SFr960b ($996bn) Swiss mortgage market in April, down from 28.2 per cent a year earlier, and 35 per cent before the global financial crisis started in 2007, according to Swiss National Bank data. Instead, Switzerland’s powerful cantonal and Raiffeisen banks are increasing their share.
The pullback by the two banks highlights the pressures created in Switzerland by some of the world’s lowest borrowing costs, which have pushed house prices relentlessly higher but also intensified competition in the mortgage market.
The FHFA Purchase-only Home Price Index YoY is 3x the Average Hourly Earn9ngs YoY.
Well, at least Yellen reassured us that, despite overheated asset prices, there will be no financial crisis in our lifetimes.