SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Variable Mortgage Rates Fall Ahead of Riksbank's Decision

The state-owned mortgage bank SBAB and Länsförsäkringar are lowering the interest rate on mortgages with a three-month term by 0.20 percentage points. The reductions come ahead of Wednesday's interest rate decision from the Swedish Central Bank.

» Updated: 08 October 2024, 02:05

» Published: 24 September 2024

Variable Mortgage Rates Fall Ahead of Riksbank's Decision
Photo: Janerik Henriksson/TT

The two lenders are thus following the series of cuts in the variable mortgage rate from other leading players on the Swedish mortgage market, such as Handelsbanken, Skandia, Nordea, and Danske Bank.

Both Länsförsäkringar and SBAB are leaving their rates on mortgages with longer terms, 1-10 years, unchanged.

The Swedish Central Bank is expected to cut the repo rate by 0.25 percentage points on Wednesday, which would be the third cut this year. The variable rates at mortgage banks usually follow the repo rate up and down.

Riksbank Governor Erik Thedéen has recently indicated that he expects the repo rate to be cut three times until the end of the year from the current 3.50 percent. However, the pricing on the interest rate market suggests a likelihood of four cuts this year - i.e., a total of 1 percentage point down to 2.50 percent.

The pricing suggests that the likelihood is high that there will be four more cuts in the repo rate by autumn 2025, down to 1.50 percent.

If the mortgage rate were to decrease by 2 percentage points for a mortgage of three million kronor, it would reduce the interest cost by 60,000 kronor per year or 5,000 kronor per month, disregarding the effects of interest deductions.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Took a tough stance on crypto companies - resigns
1 MIN READ

Took a tough stance on crypto companies - resigns

Ingvar Carlsson on PG: "A very loyal friend"
2 MIN READ

Ingvar Carlsson on PG: "A very loyal friend"

No Wage Guarantee in American Process
1 MIN READ

No Wage Guarantee in American Process

He became "PG" to the entire Swedish people
3 MIN READ

He became "PG" to the entire Swedish people

PG Gyllenhammar has died: "meant a lot"
1 MIN READ

PG Gyllenhammar has died: "meant a lot"

No Nvidia boost on Wall Street
1 MIN READ

No Nvidia boost on Wall Street

Temu's owner shows its hand
1 MIN READ

Temu's owner shows its hand

Nvidia rises in pre-trading on Wall Street
1 MIN READ

Nvidia rises in pre-trading on Wall Street

Reconstruction in the USA to save Northvolt
3 MIN READ

Reconstruction in the USA to save Northvolt

Northvolt: Negotiations are still ongoing
3 MIN READ

Northvolt: Negotiations are still ongoing

Higher Compensation for Job Interviews in Another Location
1 MIN READ

Higher Compensation for Job Interviews in Another Location

Vehicle Giant Warns of Challenges in 2025
1 MIN READ

Vehicle Giant Warns of Challenges in 2025

Unchanged interest rate in Turkey
1 MIN READ

Unchanged interest rate in Turkey

Trump anxiety in the EU over US tariffs
3 MIN READ

Trump anxiety in the EU over US tariffs

Weak demand for scrapping premium
1 MIN READ

Weak demand for scrapping premium

E-fuel company takes in half a billion
1 MIN READ

E-fuel company takes in half a billion

New Report Boost for AI Giant Nvidia's Share
2 MIN READ

New Report Boost for AI Giant Nvidia's Share

Stockholm Stock Exchange Turned Upwards
1 MIN READ

Stockholm Stock Exchange Turned Upwards

Bitcoin closer to the dream limit
1 MIN READ

Bitcoin closer to the dream limit

Higher fee to stop burning of plastic
2 MIN READ

Higher fee to stop burning of plastic