Financial market statistics, December 2024
The mortgage interest rate continues to decline
Statistical news from Statistics Sweden 2025-01-29 8.00
The growth rate for housing loans increased by 0.1 percentage points in December 2024, reaching a level of 1.4 percent. The growth rate for household consumer loans decreased from 6.7 percent in November to 5.0 percent in December. The average variable mortgage rate for new household agreements fell to 3.45 percent in December.
– The variable interest rate on new mortgage agreements continued to decline and was 1.41 percentage points lower in December 2024 than in December 2023. During the same period, the interest rate for consumer loans decreased by 0.55 percentage points, says Anton Bratt, economist at Statistics Sweden (SCB).
Developments in December 2024 summarised
Lending
- The annual growth rate of lending from MFIs (includes banks and mortgage institutions, among others) to households was 1.6 percent in December 2024. Mortgages accounted for 83 percent of total lending to households. The annual growth rate for consumption loans was 5.0 percent and accounted for 6 percent of total lending to households.
- The annual growth rate for lending to non-financial corporations was -0.8 percent in December.
- In total, lending from MFIs to households and non-financial corporations amounted to SEK 7 941 billion. Loans to households accounted for 63 percent (SEK 4 999 billion) and loans to non-financial corporations accounted for 37 percent (SEK 2 942 billion).
- The annual growth rate of mortgages from institutes other than MFIs on mortgage markets, known as mortgage credit companies, was in December 2024 noted at -1.1 percent. Mortgage credit companies accounted for 1.1 percent (SEK 45 billion) of total mortgages to households which amount to SEK 4 178 billion.
Deposits
- In December 2024, in total, households deposits amounted to SEK 2 745 billion. On demand deposits accounted for 75 percent (SEK 2055 billion). It is to compare to December 2023 when on demand deposits accounted for 75 percent of total deposits to households (SEK 2 692 billion).
- Notes and coins held by Swedish non-bank public, previously defined as the money supply measurement M0, amounted to SEK 57 billion in December 2024. The money supply M3 amounted to SEK 4 918 billion and had an annual growth rate of 0.5 percent.
Interest rates on lending and deposits
- In December 2024 the average interest rate on new agreements for mortgages to households was 3.30 percent. The average floating rate on mortgages was 3.45 percent in December, compared to 3.62 percent in November.
- The average fixed interest rate between 1 and 5 years on new agreements for mortgages to households was 2.85 percent, compared to 4.19 percent in December 2023.
- The average interest rate in December 2024 on new agreements for lending to non-financial corporations was 3.96 percent, to be compared with 5.52 percent in December 2023.
- Households’ average interest rate on new bank deposits was 1.17 percent in December 2024. The interest rate on accounts with fixed periods or a limited number of free withdrawals was 1.99 percent.
- Non-financial corporations’ average interest rate for new bank deposits was 1.55 percent. The interest rate on accounts with fixed periods or a limited number of free withdrawals was 2.37 percent.
About the statistics
The financial market statistics cover mainly monetary financial institutions (MFIs), but also include new institutes on mortgage markets, known as mortgage credit companies. Unless otherwise stated, the statistical news refers to MFIs.
The statistics include balance sheet statistics (including lending and deposits), interest rates, and monetary aggregates.
Definitions and explanations
The financial market statistics are compiled monthly. Revisions of the statistics may occur.
Monetary financial institutions (MFIs) comprise banks, housing credit institutions, finance companies, institutions financing municipalities and companies, monetary securities companies and monetary investment funds (money market funds).
Mortgage credit companies refers to non-MFI institutions that have authorisation from Finansinspektionen to issue mortgages. Usually, mortgage credit companies sell the mortgages to alternative investment funds (AIFs). The AIFs included in the financial markets statistics are linked to mortgage credit companies, and whose assets mainly comprise mortgages.
Growth rates are calculated to illustrate the development of transactions as from the corresponding period the previous year. The rates are calculated based on changes in stocks; adjustments are made so that the growth rate is not affected by stock changes unrelated to transactions.
Lending to households is divided into three categories: housing loans, consumer credit, and other lending. The purpose of a loan is not directly measured, but is approximated by categorising lending by type of collateral. Housing loans are defined as loans to private individuals or entrepreneurial households with housing as collateral. Consumer credit refers to lending to private individuals, generally without collateral. Other lending includes all other lending, for example lending to non-profit institutions serving households.
New agreements refer to agreements concluded during a given month. Interest rate statistics on new agreements is a way of measuring the price formation on loans and deposits in a given period. These statistics include all financial agreements in which the terms and conditions affecting the interest rates on deposits and lending are determined for the first time. The statistics also include renegotiations of existing loans and relocation of loans. Changes in floating interest rates due to automatic adjustments are not considered new agreements.
The loan-to-value ratio for all households is based on a sample survey. The statistics for loan-to-value ratios are derived from the MFI institutions included in the sample survey for the interest rate statistics. These statistics are new and may be subject to revision.
Next publishing will be
The next item of statistical news in this series is scheduled for publication on 2025-02-27.
Statistical Database
More information is available in the Statistical Database
Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.