Swedbank Adjusts Forecast for Variable Mortgage Rates
In a recent update on Aktiellt, Swedbank has slightly revised its forecast for variable mortgage rates. The bank now anticipates that the variable mortgage rate will decrease to 2.85% by June 2025 and remain stable thereafter. This adjustment is based on the expectation of more rate cuts from the Riksbank than previously assumed.
Rising Property Prices
Swedbank predicts that the Riksbank’s policy rate will settle at 1.75% by summer. Concurrently, Handelsbanken has released a new real estate report forecasting an upward trajectory for property prices.
“Our forecast assumes that household indebtedness will remain at current levels and that property prices will increase by approximately 4% per year,” stated chief economist Christina Nyman.
Nyman and Handelsbanken believe that whether variable or fixed mortgage rates are more economical is a toss-up.
This updated forecast by Swedbank and the insights provided by Handelsbanken shed light on the complex interplay between central bank policies, household debt levels, and property market dynamics. As the financial landscape continues to evolve, it is crucial for individuals to stay informed and make well-informed decisions regarding their mortgage choices.