The interest rates on new loans with residential property as collateral increased in June 2023, according to the latest data from banks and credit institutions in Norway. The interest rate on new loans with residential property as collateral stood at 4.69% in June, up from 4.52% in May, representing a 0.17 percentage point increase.
Furthermore, the interest rates on outstanding loans with residential property as collateral to households also experienced an upward trend. The rate rose to 4.66% in June, showing a significant increase of 0.23 percentage points from the previous month’s 4.43%.
For borrowers seeking fixed-rate loans with residential property as collateral, the interest rate offered by banks and credit institutions was 2.93% in June, a slight increase from May’s 2.83%.
However, borrowers should note that the interest rates for new loans and outstanding loans with floating rates saw a larger rise. New loans with floating rates reached 4.69% in June, up from 4.52% in May, representing a 0.17 percentage point increase. Similarly, outstanding loans with floating rates rose to 4.75% in June, indicating a 0.24 percentage point increase from May’s 4.51%.
On the other hand, banks and credit institutions offered fixed-rate loans with an interest rate of 4.73% in June, which is considerably higher than May’s 4.40%. This marked a significant 0.33 percentage point increase in fixed-rate loans for residential properties.
Regarding the margins on loans, the total outstanding loans with residential property as collateral to households decreased from 0.38% in May to 0.15% in June, indicating a 0.23 percentage point decline. Similarly, the margins on new loans with residential property as collateral to households also saw a decline from 0.47% in May to 0.18% in June, a 0.29 percentage point decrease.
As for deposit rates, the total deposits from households increased to 1.99% in June, up from 1.89% in May, representing a 0.10 percentage point increase.
The data reflects the current economic conditions and interest rate fluctuations in the Norwegian banking sector, affecting borrowing and deposit activities for households.