SBAB announced on Monday that the bank is raising interest rates on mortgages with a 1-10 year fixed term by 0.15-0.25 percentage points. On Friday, Danske Bank raised its fixed mortgage rates.
Long-term market interest rates have risen. This follows partly from the fact that the probability of inflation has risen, but we also know that long-term interest rates have risen because the US government debt does not look so favorable, says Robert Boije.
The close result in Sunday's parliamentary election means it may take time before Sweden has a new government. The question is whether this could affect interest rates.
"Of course, this uncertain situation, when you don't know how the government will be formed in Sweden, creates uncertainty. I find it difficult to see that it would have any decisive significance for long-term interest rates. But the market generally doesn't like uncertainty, so it's clear that it's not good," says Boije.
More raises
More mortgage providers will follow Danske Bank and SBAB, believes Lendo savings economist Sharon Lavie.
"That more people will back down if they haven't already is not even a question mark, but I would definitely count on that," she says.
On Thursday next week, the Swedish Central Bank will release its interest rate announcement.
I think it is very important for Swedish households to understand that there is a real risk of an increase, says Lavie.
Boije also believes in a rise this year, but later.
We believe they will not raise the key interest rate until December.
Increases uncertainty
A prolonged government formation process would create uncertainty for the Swedish Central Bank, says Robert Boije.
If we still don't have a government in place at the next interest rate decision, which is very likely, I think the Swedish Central Bank will include it as an uncertain picture. But I think they will be very cautious about saying that it would have any decisive significance for the interest rate decision itself, but that it adds a filter of uncertainty.
Could the election result affect the Swedish Central Bank in the longer term?
Yes, I think so. When you know which government it will be, it becomes easier to assess what policies will be pursued - will there be major tax cuts or increases instead - and then it is easier to include that in the forecast, says Robert Boije.
