On Monday, Statistics Sweden (SCB) announced that inflation in June rose unexpectedly much and according to several assessors, the upcoming interest rate cuts, which the Swedish Central Bank has hinted may be in the cards, are now in danger.
Economist Christina Sahlberg at the comparison site Compricer does not think that you as a mortgage borrower should take too hard on such a figure. It's the trend you should look at.
I am of the opinion that the market, inflation, and interest rates will go up and down and back and forth. That's how it looks and it's nothing that we as mortgage customers can really predict or try to time and make a profit on. Often when you try to time it, it just goes wrong, says Christina Sahlberg.
Check the competition
But with that said, it's not time to be completely passive either. She says that as a mortgage customer with a variable interest rate, it's essential now to keep track of what interest rate you have at your bank.
Do I, for example, still have my interest rebate that I may have received a long time ago, or has it disappeared? What interest rate do others have at my bank? And then also keep track of whether your bank continues to lower interest rates and is competitive.
If your own bank does not seem to offer a competitive interest rate, it may be time to look around at what other banks can offer.
Another question that may arise is whether it's now time to tie up your mortgage interest rate.
It's not really possible to time and know what's best. Economically, it has historically been more beneficial to have a variable rather than a fixed interest rate. But you have to think about how it feels too. It's essential that it feels good with the economy and that you feel secure, says Sahlberg.
She believes that many people would like to tie up their interest rate but have been afraid to do so. It has been costly if, for example, you tied up the interest rate for five years but for some reason need to move after one year.
But it's something that the new rules for interest rate differential compensation that came into force on July 1 may change. The regulatory change is intended to make it easier and cheaper for consumers to terminate fixed-rate loans prematurely.
Christina Sahlberg thinks it would be good for both consumers and society if more people had fixed-rate mortgages.
Partly it's good for the banks, which can plan better, and partly it's good for consumers who can feel secure. And then it's good for society if not everyone is so interest-rate sensitive, says Christina Sahlberg.
