Around 0.10 percentage points. That's how much cheaper the variable mortgage rate became at the four major banks on average in January, according to fresh statistics. The figures refer to the so-called average interest rates, i.e. what households actually pay, compared to the banks' list rates which often lie about one percentage point higher.
The cheapest variable average interest rate among the major banks was SEB's in January, 3.25 percent, while the other three, Handelsbanken, Swedbank, and Nordea, had interest rates of 3.40 percent or just below.
At the end of January, the Swedish Central Bank lowered the repo rate, so even lower variable mortgage rates are expected, but then economists and the Swedish Central Bank itself start to see an end to the rate cuts for this time.
At the same time, the statistics show that the fixed mortgage rates bottomed out in December, or possibly in November. The cheapest rate is obtained on a two-year loan, which at the major banks now lies at just over 3 percent. Compared to December, the average interest rate on a two-year loan has risen by around 0.10 percentage points.
This means that the variable and fixed mortgage rates currently cost almost the same.
Variable mortgages are controlled by the Swedish Central Bank's interest rate. Fixed mortgages are mainly influenced by bond interest rates, which in turn are controlled by expectations of inflation and the general interest rate level going forward.
