Interest rates in Norwegian banks and mortgage companies have shown minimal changes in April 2023, according to the latest data released by financial authorities. The interest rates on new loans secured on dwellings to households have remained relatively stable.
The average interest rate on new repayment loans secured on dwellings to households stood at 4.38% in April 2023, representing a slight increase of 0.16% compared to the previous month. This indicates a modest upward trend in borrowing costs for Norwegian households.
When examining the breakdown of interest rates, outstanding loans secured on dwellings to households showed little variation. Loans with floating interest rates experienced a marginal increase from 4.30% to 4.31%, while loans with fixed interest rates rose by 0.02% to reach 2.80%.
In terms of new repayment loans secured on dwellings, there was a notable difference between interest rate types. Loans with floating interest rates mirrored the overall average of 4.38%, showing an increase of 0.16% from the previous month. On the other hand, loans with fixed interest rates experienced a decrease of 0.09% and settled at 4.32%.
Loan margins, which reflect the difference between interest rates and the cost of funds for lenders, demonstrated a decline. The total outstanding loans secured on dwellings to households exhibited a decrease in loan margins from 0.44% to 0.38%. Similarly, loan margins for new loans secured on dwellings to households increased by 0.10% to reach 0.53%.
The deposit rate, reflecting the interest rates on deposits from households, experienced a slight increase from 1.74% to 1.77%. This signifies a potential rise in returns for savers.
The next update on interest rates in banks and mortgage companies is scheduled for 29 June 2023. It remains to be seen how market conditions and economic factors will impact borrowing costs and financial trends moving forward.
Please note that the data provided represents a sample of banks and mortgage companies and may not reflect the entire market