It is likely that more banks will lower the mortgage interest rate

After SBAB’s interest rate cut, a small relief for many mortgage borrowers may now be in the offing, according to experts. Since market interest rates have fallen back and borrowing costs have decreased, more banks will follow in the wake of the state-owned big bank.
– If you look at how banks have historically acted like that is it a follow john gamesays Peter Malmqvist, independent financial analyst.

The state mortgage bank SBAB is lowering all mortgage interest rates by between 0.1 and 0.15 percentage points from today. According to the big bank itself, the reduction is due to the fact that market interest rates have fallen back and that borrowing costs have decreased, as well as the competitive situation in the market.

The fact that the Riksbank chose not to raise the key interest rate in November is another indication that interest rates are on the way down. And today’s announcement from SBAB will probably lead to more banks following suit, says Peter Malmqvist, independent financial analyst.

– There are quite good conditions for that. If you look at how the banks have acted historically, it is a follow John game, he tells TV4 Nyheterna and believes that other large banks and niche banks will follow downwards.

International inflation rate lower than in Sweden

At the same time, Peter Malmqvist believes that the upcoming rate of inflation is also of great importance for the banks’ actions.
– What controls the interest rate is the inflation rate and it has come down a lot both globally and in Sweden, he says, but at the same time emphasizes that Sweden has a relatively high inflation rate compared to many other countries.
– So in that perspective, you should be a little cautious in your optimism. But if the rate of inflation continues on the track it has been on for the past year, there should be a pretty good chance that the interest rate will not be higher than today in any case.

Market rates rule

And according to Peter Malmqvist, it is above all the market interest rates that govern – i.e. the interest that actors are prepared to pay for different types of credit. It is priced according to supply and demand.
– If the market interest rates go down, the interest rates to us who actually pay them will also go down, then exactly when that happens is very difficult to say. But market interest rates have had a falling trend in recent weeks so that there would be an adjustment in mortgage interest rates is not particularly surprising in itself

Malmqvist is therefore cautiously optimistic, but believes that today’s interest rates will continue to be at a significantly higher level than for a long time.

– It is positive that the interest rates are going down, but if we look at a one-year perspective, the interest rates have gone up a lot. So sure, it’s a relief but overall over the last twelve to eighteen months we’ve had a very sharp increase in interest costs for the vast majority. But this is a step in the right direction to a lower interest rate