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Financial market statistics, November 2020

Fixed interest rates on mortgages historically low

Statistical news from Statistics Sweden 2020-12-29 9.30

In November 2020, the fixed interest rate between 1 and 5 years on new agreements for mortgages to households was 1.29 percent. This is the lowest level since publication of these statistics began in 2005.

About the publication

Statistics Sweden’s monthly publication of financial markets statistics covers mainly monetary financial institutions (MFIs), but also includes new institutes on mortgage markets, known as mortgage credit companies. Unless otherwise stated, the statistical news refers to MFIs.

The publication includes balance sheet statistics (including lending and deposits), interest rates, and monetary aggregates. International banking statistics are also published on a quarterly basis.

Developments in November 2020 in brief

Lending

  • The annual growth rate of lending to households was 5.3 percent. The growth rate of lending to households has been broadly unchanged over the past year. Mortgages, which accounted for 82 percent of total lending to households, had an annual growth rate of 5.5 percent. The growth rate of mortgages has increased over the past year. Households’ consumption loans had a growth rate of 5.8 percent.
  • The annual growth rate of lending to non-financial corporations was 3.5 percent. After an increase in March and April, the growth rate has since declined.
  • In total, lending from MFIs to households and non-financial corporations amounted to SEK 6 911 billion, of which loans to households accounted for 64 percent and loans to non-financial corporations accounted for 36 percent.
Lending to households and non-financial corporations, annual growth rate
Namnlös

  • The annual growth rate of mortgages from new institutes on mortgage markets, known as mortgage credit companies, is generally significantly higher than that of MFIs. The growth rate of mortgages from mortgage credit companies was 43.8 percent in November and accounted for almost 1 percent of total mortgages to households.

Interest rates on lending and deposits

  • The floating rate on new agreements for mortgages to households was 1.48 percent, which is the lowest rate since the end of 2018.
  • The average fixed interest rate between 1 and 5 years on new agreements for mortgages to households was 1.29 percent, which is the lowest level since publication of these statistics began in 2005.
  • The average interest rate on new agreements for lending to non-financial corporations was 1.62 percent, while the floating interest rate for new agreements to non-financial corporations was 1.77 percent.

 

Interest rates on new agreements: mortgages and loans to non-financial corporations
Namnlös

  • Households’ average interest rate on new bank deposits was 0.10 percent. The interest rate on accounts with fixed periods or a limited number of free withdrawals was 0.25 percent.
  • Non-financial corporations’ average interest rate for new bank deposits was 0.02 percent. The interest rate on accounts with fixed periods or a limited number of free withdrawals was 0.03 percent.

 

Interest rates on new bank deposits: households and non-financial corporations

Diagram

About the publication

Statistics Sweden’s monthly publication of financial markets statistics covers mainly monetary financial institutions (MFIs), but also includes new institutes on mortgage markets, known as mortgage credit companies. Unless otherwise stated, the statistical news refers to MFIs.
The publication includes balance sheet statistics (including lending and deposits), interest rates, and monetary aggregates. International banking statistics are also published on a quarterly basis.

Definitions and explanations

The financial market statistics are compiled monthly from MFI. 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-MFIinstitutions 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, for example if an institute is added or removed from the population.

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.

Next publishing will be

The next statistical news in this series is scheduled for publication on 2021-01-29.

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.

Statistical agency and producer

Statistics Sweden, Financial Market Statistics Unit

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171 54 Solna

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Viktor Morell

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