Surge in Swedish Household Mortgage Rates Reaches 4.80% in November 2023

Recent data from Statistics Sweden (SCB) reveals that the average interest rate on new mortgage agreements for Swedish households hit 4.80% in November 2023. This marks a continued upward trend, with the annual growth rate for household mortgages from monetary financial institutions (MFI) decreasing each month since May 2022, reaching 0.5% in October. In contrast, lending to non-financial corporations experienced a 1.4% annual growth rate during the same period.

Key Points for November 2023:

  1. The annual growth rate for MFI’s total lending to households stood at 0.5%, with housing loans making up 83% of total household lending.
  2. Consumer loans, constituting 6% of household loans, saw a growth rate of 1.8%.
  3. Total lending from MFI to households and non-financial corporations amounted to SEK 7,912 billion, with household loans representing 62%.
  4. Mortgage rates for household loans from non-MFI entities in the housing credit market, like housing credit institutions, declined by 11% annually.
  5. MFI’s deposits from households totaled SEK 2,666 billion, with current accounts accounting for 77%.

The average interest rate for new household mortgage agreements in November 2023 was 4.80%, with variable-rate mortgages at 4.89%. For fixed-term mortgages of 1 to 5 years, the average rate was 4.57%, compared to 3.89% in November 2022.

The average interest rate for new lending agreements to non-financial corporations was 5.37%, up from 3.90% in November 2022.

Households saw an average interest rate of 2.13% for new deposits on bank accounts, while non-financial corporations experienced a rate of 2.26%. Accounts with a fixed term or limited free withdrawals had rates of 3.33% for households and 3.78% for non-financial corporations.