Rise in lending rates for new loans

Lending rates for all new loans from housing credit institutions to households rose in July compared to June. Compared to one year earlier, the average lending rate to households from housing credit institutions rose by 1.05 percentage points to 4.60 in July.

Lending from housing credit institutions to households

The volume of lending from housing credit institutions on new loans to households was SEK 27 865 million in July, which is a decrease compared to June but on a level with the previous year. Of all new loans from housing credit institutions to households, more than half, 53.7 percent, were still with a fixed rate of interest in July. The total volume that housing finance institutions loaned to households amounted to SEK 1 325 billion, which represents 71 percent of total lending from MFIs to households.

Growth rate of money supply decreases

The growth rate of the money supply measure M1 fell from 13.2 percent in June to 11.6 percent in July 2007, amounting in total to SEK 1 253 billion in July. The broader measure M3 also fell compared to June, from 12.4 percent to 11.6 percent and amounting in total to SEK 1 845 billion in July. One reason for the falling growth rate is that demand lending from non-financial companies and households decreased compared to June.

The money supply is measured by the amount of liquid funds in the economy, held by non-MFI. There are several different ways to measure the money supply.
The money supply measure M1 consists of notes, coins and current accounts (for example salary-linked bank accounts and other accounts in which money can in principle be withdrawn immediately). M3 consists of the components in M1 plus deposits with conditions, real repurchasing transactions (repo rates), shares in money market funds and securities with a duration of up to two years.