Low Mortgage Rates in Sweden
Swedish home owners pay some of the lowest mortgage rates in Europe, according to a study by major bank SEB published in broadsheet Dagens Nyheter on Tuesday.
The average non-fixed interest rate for a home loan offered in Sweden is just 1.6%, compared with well over 3.5% for the UK, Germany, Denmark and the USA.
This cheap cash for house buyers has contributed to an increase of 8% in the number of new mortgages in the previous year.
Erica Blomgren, analyst at SEB says that this shows that the government's financial policy has been successful in in this area.
But the time of low rates could be at an end - the major banks all predict that the Swedish Central Bank will raise interest rates steeply soon, by the middle or even by the start of 2010, whereas the Central Bank itself believes that there will be no need to hike the rate until the end of that year.