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Interest rates for Swedish household loans continues to fall
Tuesday, 27 March 2012
Households' loans from Swedish monetary financial institutions (MFIs)
showed decreasing interest rates in February. This explains the
tendency where less loan are being demanded according official data and
report.
The average interest rate for households' new loan agreements amounted
to 4.05 percent in February. This is a decrease of 0.05 percentage
points compared to January and 0.20 percentage points lower than in
December statistic Sweden shows. MFIs include banks, housing credit
institutions and finance companies.
The falling interest rates for households' loans are mainly due to a
decrease in the short-term rates, but long-term rates also showed
downturns. The floating rate fell from 4.44 percent in January to 4.36
percent in February. The interest rate for new loan agreements with a
fixed period of more than three months up to one year was 3.89 percent
in February. In January the corresponding rate was 4.09 percent.
Households' interest rates for new loan agreements for housing loans
amounted to 3.96 percent in February, a decrease compared to January
when the interest rate was 4.04 percent.
The lending rate to non-financial corporations fell in February, as in
January. In February the average rate for new loan agreements was 3.71
percent, compared to 3.80 percent in January (revised figure). Both
short-term and long-term interest rates contributed to the decrease.
| Interest rate, new agreements to housholds | Growth rate, lending to households | Interest rate, new agreements to non-financial corporations | Growth rate, lending to non-financial corporations |
Feb 2011 | 3.76% | 7.60% | 3.20% | 1.90% |
Jan 2012 | 4.10% | 5.10% | 3.80% | 6.60% |
Feb 2012 | 4.05% | 5.00% | 3.71% | 6.00% |
Source: Statistic Sweden
|
Households' interest rates for deposits also fell in February compared
to January. The average rate for households' new deposits in bank
accounts was 1.22 percent in February compared to 1.36 percent in
January (revised figure). Interest rate and growth rate, lending to
households and non-financial corporations
On the other side, from the banks, growth of loans for households from
monetary financial institutions continued to drop in February. The
growth rate in February was 5.0 percent, compared to 5.1 percent in
January. In February 2011 the growth rate was 7.6 percent, and has
shown a decreasing trend during all of 2011.
At the end of February households' borrowing from MFIs amounted to SEK
2 661 billion. This is an increase of SEK 126 billion compared to the
corresponding month last year. The largest part of households' loans
consists of housing loans, which in February amounted to SEK 2 137
billion and had an annual growth rate of 5.2 percent. Of these loans,
52 percent had floating rates, which is about the same as in January.
Compared to February of the previous year, housing loans have increased
by SEK 106 billion.
The remaining part of household lending consists of, among other
things, loans for consumption that often lack security and loans to
farmers where agricultural buildings comprise the security.
Households' loans for consumption amounted to SEK 163 billion and loans
with security of agricultural buildings amounted to SEK 165 billion.
MFIs' lending to non-financial corporations amounted to SEK 1829
billion. The annual growth rate was 6.0 percent, a decrease compared to
January when the growth rate was 6.6 percent. The growth rate was 1.9
percent in February of 2011.
News source: Statistic Sweden
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