"Some player starts raising interest rates and then the other banks usually follow suit. If it follows previous patterns, it will definitely happen," says SBAB's chief economist Robert Boije.
Skandia is raising interest rates on loans with fixed terms of between one and five years by 0.19-0.25 percentage points.
The interest rate for variable mortgages, with a three-month fixed period, is unchanged.
“Concern in the outside world”
"After the negative developments in Iran in recent weeks, several financial markets have been affected. The Swedish fixed income market is no exception and, based on rising borrowing costs, the listed interest rate for mortgages with a 1-5 year fixed term is now being increased," writes Skandia.
Robert Boije does not want to comment on whether state-owned SBAB will act similarly, but gives his view of the market situation.
We are concerned about the world, where risk premiums have risen. We have seen that interest rates have risen on mortgage bonds, and that long-term interest rates are simply moving upwards.
Can change quickly
Skandia's move comes the day after the US Federal Reserve decided to leave its key interest rate unchanged. The Swedish Riksbank also left its key interest rate unchanged in its latest monetary policy decision on June 17.
"You have to distinguish between floating interest rates and long-term interest rates. What we have seen recently is that the long-term interest rate segments have moved upwards, and that affects the banks' borrowing costs when it comes to lending in the slightly longer term," says Boije.
However, he believes that the situation could change quickly.
These long-term interest rates are now very volatile due to what is happening in the world. It may be enough for there to be an agreement between Iran and the US soon - then interest rates will fall back, says Robert Boije.
