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Congratulations to the borrower – the policy rate unchanged! | Loans

Sweden has had a negative interest rate for two years. Today, the new message came from the Goodbank – interest rates remain unchanged for the time being. The country’s mortgage borrowers can thus draw a sigh of relief.

“In order for inflation to stabilize around 2 per cent, a continued strong cyclical situation is required and the krona is not strengthening too quickly. Monetary policy therefore needs to remain expansionary, ”says the Goodbank in a statement.

Of all the judgments, an interest rate hike is to be expected, but only in the second quarter of 2018. Since the interest rate is currently at – 0.5%, it does not mean that there will be a shock increase that affects mortgage loans to a greater extent. In addition, the repo rate is more likely to be lowered even more in the short term.

New life in the housing market

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The message may mean that the housing market is gaining momentum as both buyers and sellers know what applies for a further time ahead and thus dare to take more chances. However, many experts raise a warning.

“This does not mean that you as a household can relax completely. What you should remember is that the interest rate on mortgage loans is set by the market. If inflation expectations rise, then market rates rise and, in the long run, mortgage rates.

The day they choose to raise the repo rate

The day they choose to raise the repo rate

The market and mortgage rates may already have gone up, ”Arturo Arques, a private economist at Swedbank, told Expressen.

And, of course, too little interest rate challenges. It can weaken the krona, which among other things leads to more expensive imports and the low interest rate situation also places demands on savings as the money does not receive any automatic growth in our private accounts.

At the same time

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The Goodbank also chose to lower the equilibrium interest rate, the repo rate that is considered appropriate from a more long-term perspective and in a more normal economic situation.

The previous range for the equilibrium interest rate was between 3.5-4.5% and now it is lowered to 2.5-4.0%. This too can be seen as a victory for mortgage borrowers.