Financial market statistics, September 2024
The floating rate for housing loans continues to fall
Statistical news from Statistics Sweden 2024-10-25 8.00
The growth rate for housing loans increased slightly to 1.0 percent in September 2024. The average floating rate for new agreements for housing loans fell in September for the second month in a row, to 4,19 percent. The average fixed interest rate on housing loans with a maturity of three years or more increased somewhat compared to August.
– We can see that the decline in lending rates for housing loans with shorter maturities continues, although the decline is smaller than last month. Certain housing loan rates with longer maturities even increased, says Andreas Rasku, economist at Statistics Sweden.
Developments in September 2024 summarised
Lending
- The annual growth rate of lending from MFIs (includes banks and mortgage institutions, among others) to households was 1.0 percent in September 2024. Mortgages accounted for 83 percent of total lending to households. The annual growth rate for consumption loans was 2.6 percent and accounted for 6 percent of total lending to households.
- The annual growth rate for lending to non-financial corporations was in September -2.4 percent.
- In total, lending from MFIs to households and non-financial corporations amounted to SEK 7 925 billion. Loans to households accounted for 63 percent (SEK 4 975 billion) and loans to non-financial corporations accounted for 37 percent (SEK 2 950 billion).
- The annual growth rate of mortgages from institutes other than MFIs on mortgage markets, known as mortgage credit companies, was in September 2024 noted at -6.9 percent. Mortgage credit companies accounted for 1.0 percent (SEK 43 billion) of total mortgages to households which amount to SEK 4 154 billion.
Deposits
- In September 2024, in total, households deposits amounted to SEK 2 727 billion. On demand deposits accounted for 73 percent (SEK 2002 billion). It is to compare to September 2023 when on demand deposits accounted for 78 percent of total deposits to households (SEK 2 685 billion).
- Notes and coins held by Swedish non-bank public, previously defined as the money supply measurement M0, amounted to SEK 57 billion in September 2024. The money supply M3 amounted to SEK 4 860 billion and had an annual growth rate of 1.0 percent.
Interest rates on lending and deposits
- In September 2024 the average interest rate on new agreements for mortgages to households was 3.82 percent. The average floating rate on mortgages was 4.19 percent in September, compared to 4.34 percent in August.
- The average fixed interest rate between 1 and 5 years on new agreements for mortgages to households was 2.90 percent, against 4.45 percent in September 2023.
- The average interest rate in September 2024 on new agreements for lending to non-financial corporations was 4.36 percent, to be compared with 5.52 percent in September 2023.
- Households’ average interest rate on new bank deposits was 1.79 percent in September 2024. The interest rate on accounts with fixed periods or a limited number of free withdrawals was 2.86 percent.
- Non-financial corporations’ average interest rate for new bank deposits was 2.06 percent. The interest rate on accounts with fixed periods or a limited number of free withdrawals was 3.17 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, for example if an institute is added or removed from the population.
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 2024-11-27.
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.