Financial market statistics, December 2020
Fixed interest rates on mortgages historically low
Statistical news from Statistics Sweden 2021-01-29 9.30
In December 2020, the fixed interest rate between 1 and 5 years on new agreements for mortgages to households was 1.29 percent, which is the same historically low level as last month.
Developments in December 2020 in brief
Lending
- The annual growth rate of lending to households was 5.4 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 5.7 percent. The growth rate of mortgages has increased over the past year. Households’ consumption loans had a growth rate of 3.9 percent, which is the lowest since August 2016.
- The annual growth rate of lending to non-financial corporations was 3.3 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 6 916 billion, of which loans to households accounted for 64 percent and loans to non-financial corporations accounted for 36 percent.
- 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 44.4 percent in December and accounted for almost 1 percent of total mortgages to households.
Interest rates on lending and deposits
- The average interest rate on new agreements for mortgages to households was 1.36 percent, while the floating rate on mortgages was 1.44 percent, the lowest 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 same historically low level as last month.
- The average interest rate on new agreements for lending to non-financial corporations was 1.31 percent, while the floating interest rate for new agreements to non-financial corporations was 1.35 percent.
- 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 0.26 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.
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 2021-02-25.
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.