Swedes' mortgage debt continues to swell
The Local · 27 Nov 2013, 10:41
Published: 27 Nov 2013 10:41 GMT+01:00
The annual growth rate of household indebtedness was calculated to be 4.9 percent in October this year, a 0.1 percentage-point increase in one month. Statisticians at the state agency predicted that the increase will continue, and cited the upswing from 4.5 percent in January 2013.
The Swedes are also increasingly borrowing money for non-household related expenditures, known in Sweden as consumption loans. The borrowing rate in that sector has now hit an annual growth rate of 3.9 percent.
The Swedes still enjoy low interest rates - as the Riksbank has pegged the national repo rate at one percent for the time being. Its executive board said in October that it did not forecast raising the repo rate until late 2014 at the very earliest, citing the need to support the economic recovery.
Swedes with adjustable-rate mortgages saw the rates increase slightly from 2.94 in September to 2.95 in October. Home-buyers who bought a place to live in October had on average a 2.84-percent interest rate, a decrease from September's 2.87.