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Financial market statistics, November 2021

The floating mortgage rate at its lowest level since 2005

Statistical news from Statistics Sweden 2021-12-28 9.30

In November 2021, the annual growth rate of mortgages to households from monetary financial institutions was 6.8 percent. The growth rate for lending to non-financial corporations was 4.3 percent. The mortgage rates remain historically low.

– The average floating rate on new agreements for mortgages to households dropped to 1.38 percent in November. This is the lowest floating rate since Statistics Sweden started producing interest rate statistics in 2005. Concurrently, the fixed interest rates increased, but remain at historically low levels, says Marcus Lodén, statistician at Statistics Sweden.

Developments in November 2021 summarised

Lending

  • The annual growth rate of lending to households was 6.6 percent and accounted for 82 percent of total lending to households. The growth rate of consumption loans was 6.0 percent and accounted for 6 percent of total lending to households.
  • In November the growth rate for lending to non-financial corporations was 4.3 percent. The rate continues on an upward trajectory after a period of low growth and reached its highest level in 2021.
  • In total, lending from MFIs to households and non-financial corporations amounted to SEK 7 255 billion. Loans to households accounted for 65 percent (SEK 4 709 billion) and loans to non-financial corporations accounted for 35 percent (SEK 2 546 billion).
Lending to households and non-financial corporations, annual growth rate
Financial market statistics, November 2021

  • The annual growth rate of mortgages from new institutes on mortgage markets, known as mortgage credit companies, is significantly higher than that of MFIs. In 2021, the annual growth rate increased from 41.9 percent to 50.0 percent between January and April. However, the growth rate has slowed and in November it was 41.4 percent. Mortgage credit companies accounted for 1.0 percent (SEK 39 billion) of total mortgages to households.

Interest rates on lending and deposits

  • The average interest rate on new agreements for mortgages to households was 1.35 percent. The average floating rate on mortgages was 1.38 percent, dropping to its lowest level since 2005, the year in which Statistics Sweden started producing interest rate statistics.
  • The average fixed interest rate between 1 and 5 years on new agreements for mortgages to households was 1.34 percent, an increase of 0.08 percentage points compared to October 2021. The fixed interest rate has overall increased in November 2021, but remains at historically low levels.

MFI:s' lending rates to households
Financial market statistics, November 2021

  • The average interest rate on new agreements for lending to non-financial corporations was 1.47 percent, while the floating interest rate for new agreements to non-financial corporations was 1.51 percent. 

Interest rates on new loans: mortgages and loans to non-financial corporations
Financial market statistics, November 2021

  • Households’ average interest rate on new bank deposits was 0.08 percent. The interest rate on accounts with fixed periods or a limited number of free withdrawals was 0.21 percent.
  • Non-financial corporations’ average interest rate for new bank deposits was 0.01 percent. The interest rate on accounts with fixed periods or a limited number of free withdrawals was 0.02 percent.

Interest rates on new bank deposits: households and non-financial corporations
Financial market statistics, November 2021

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. International banking statistics are also published on a quarterly basis.

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-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.

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.

Next publishing will be

The next item of statistical news in this series is scheduled for publication on 2022-01-28.

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.

Statistical agency

Statistics Sweden

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