SBAB predicts moderate increase in mortgage interest rates

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SBAB predicts moderate increase in mortgage interest rates
Photo: Lars Schröder/TT

State-owned bank SBAB predicts rising mortgage rates. The window for locking in mortgages at a favorable rate is still considered open.

In a new mortgage interest rate report, the bank's chief economist, Robert Boije, writes that the variable mortgage interest rate is expected to increase by one-tenth of a percentage point in a year's time. This is partly because housing market activity is expected to increase. At the same time, longer-term fixed mortgage rates are essentially unchanged compared with the assessment in December last year.

"According to our forecast for both variable mortgage rates and longer-term fixed rates, it appears to be relatively cheap to insure against the risk of increased interest rates," he says in a press release.

SBAB is also sticking to its previous forecast that the Swedish Central Bank will maintain the policy rate at the current level throughout 2026 and well into 2027.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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