Several have been forced to sell their homes because they could not afford the high mortgage interest, according to the Swedish Real Estate Agency.
Ellinor Mure’s interest rate was about to triple, that and other conditions made her look for a new home.
– I don’t think I would have succeeded if I had waited until the interest rate increased.
Last year Ellinor Mure realized she had to move. Her favorable mortgage rate had previously been locked in, but that period was about to expire and the rate would then triple. She also had children and the situation in her old apartment was no longer sustainable.
“Relieved”
Eight months later, the old apartment is sold and now she is moving to a smaller one. All in all, it was about the same cost as from the beginning but something that was worth it according to Ellinor Mure.
– I’m so relieved, it’s something I’ve been thinking about and been very stressed about. If the cost is going to triple, it has to be in an apartment that works and meets my needs, she says.
Ellinor Mure is not alone. According to the Swedish Real Estate Agency, many have been forced to sell their homes as a result of the high interest costs.
– It could be that you entered the housing market with the wrong conditions or because the family situation has changed, says Erik Wikander, vice president of Swedish real estate agency.
Roughly 50,000 people affected
According to the real estate agency, there are roughly 50,000 people who want but have not been able to sell or buy a home during the market that has been in place since spring 2022. Something that has been driven by inflation, a strong increase in interest rates and a concern about what is happening in the outside world.
– The worry means that fewer people also want to sell their homes. So even if you want to downsize, you may not have had the opportunity to find what you want because it hasn’t been available either, says Erik Wikander, vice president at Swedish real estate agency.
With Wednesday’s interest rate announcement, the four major banks have lowered the mortgage interest rate on three-month loans by 0.25 percentage points, which is a step in the right direction, says Erik Wikander.
– Now is actually a good time to make a housing deal. With the signal value that the Riksbank has given, with the underlying pressure. Those who will be the winners in the future are those who act here and now, he concludes.