The average lending rate from Monetary Financial Institutions (MFI) for new loans to households was 5.06 percent in October, an increase of 0.11 percentage points from the previous month and 1 percentage point compared to a year ago.
Most of the interest rates, those with floating rates and those with shorter duration continue to rise. However, the opposite holds true for loans with longer duration than five years; the rates for these loans continue to follow the slight drop in the trend which began in July this year. At the end of October, the lending rate on new loans with a duration of more than five years was 5.26 percent, compared to 5.27 in September and 5.32 in July 2007.
Lending to households
The annual growth rate for MFIs' loans to households was the same in October 2007 as in the previous month, or 11.7 percent. Total lending of MFIs to Swedish households amounted to SEK 1 926 billion in October. SEK 131 billion comprised loans for consumption and SEK 1 236 billion for housing. The annual growth rate for households' consumption credit from MFIs amounted to 13.8 percent, compared to 13.5 percent the month before and 13.6 percent in January 2007. The corresponding rates for housing loans to households was 11.8 percent in October compared to 11.7 percent in September and 13.2 percent in January.
Lending from housing credit institutions to households
The current trend that over half of the borrowers choose fixed interest rates still stands. In October 57 percent of households took out new loans at fixed rates from housing credit institutions. Of these, 67 percent had a fixed interest period of less than five years.