The Swedish Mortgages Market
First, a brief description of general economic trends is given, followed by a discussion of developments in housing construction. This shows that there has been a signiﬁ cant increase in construction in recent years and the number of housing starts have reached the record ﬁ gures from the beginning of the 1990s. The housing prices have increased for a number of years, but the past year they have started to fall. At the end of June 2018 the price of single family homes has, on average, decreased by –2.4 percent during the last year and the price of tenant owned apartments has decreased by –6.7 percent.
Residential mortgage lending amounted to SEK 4,085 billion in June 2018. The rate of growth for mortgages was 6.6 percent annually, which is a decrease as compared with the same period last year when the growth rate was 7,0 percent. The rate of lending to single-family homes was 5.4 percent annually in June 2018 which is unchanged compared to the same time last year. The rate of lending to tenant-owned apartments is higher
than for single family homes and was 9.3 percent annually. The rate of lending to tenant-owned apartments has declined the last year and was 11.3 percent in June 2017.
Mortgage interest rates have generally declined over the last six years and interest rates are at historically low levels.
Household indebtedness is outlined, as are implement- ed and proposed measures to counteract high indebtedness. Finally, an overview is provided of the main forms of borrowing for mortgage institutions and of various events related to the mortgage market during the past year.