Swedens Policy Rate

Mortgage rates rise despite unchanged policy rate – how it affects your finances

Although the Riksbank chose to keep the policy rate unchanged at 1.75 percent on March 19, 2026, several major banks have already begun raising their mortgage rates. The reason is not a new interest rate decision from the Riksbank, but rather that energy prices have skyrocketed, pushing up the banks' own interest rate forecasts. This means that households with mortgages may face higher monthly costs – even without an official rate hike from the Riksbank.

What has happened and why does it matter?

• The policy rate stands still, but mortgage rates move: The Riksbank has signaled that it may raise or lower rates in the future, but has made no changes for now. At the same time, banks have begun adjusting their mortgage rates upward based on new market rates and expectations.
• Energy prices are driving up rate forecasts: An energy shock has led banks, such as SEB, to anticipate higher interest rates ahead, which quickly affects the rates households encounter.
• A record number have variable rates: According to Statistics Sweden (SCB), a record proportion of mortgages have variable interest rates. This means many households feel the impact of banks' rate hikes immediately.
• Uncertainty about the future: Experts are warning of stagflation – meaning high prices and low growth – which could create a difficult balancing act for both borrowers and savers.

How mortgages, personal loans, and savings are affected

• Mortgages: If you have a mortgage with a variable rate, your monthly cost can rise immediately when the bank raises the rate, regardless of what the Riksbank does. It is therefore important to check the actual interest rate you are paying right now.
• Personal loans: Personal loans with variable rates can also be affected, especially if the bank adjusts its funding costs to the new market rates.
• Savings: If banks' interest rate forecasts are raised, it could eventually lead to higher interest rates on savings accounts and bond funds, but this often happens with a delay.

How can you think and act?

• Check your interest rate: Find out if your bank has already raised the mortgage rate. Many households notice the increase immediately, especially with variable rates.
• Consider a fixed rate: If you are worried about further increases, it might be time to fix the interest rate on all or part of the loan, but keep in mind that fixed rates are often more expensive initially.
• Review your budget: Calculate what a higher interest rate means for your finances and plan for the possibility that monthly costs may rise, even if the official interest rate announcements remain unchanged.
• Understand the difference between the policy rate and the mortgage rate: In practice, the mortgage rate is driven more by market rates and the bank's risk assessment than by the Riksbank's decisions. Therefore, the two can move in different directions.
• Savings and interest rates: Keep track of when banks adjust savings rates. It may take some time before higher market rates are reflected in your savings account.

Important things to keep in mind

• The policy rate and the mortgage rate do not always follow the same pace. Keep track of both to understand your finances.
• Do not jump to the conclusion that rates will fall just because the policy rate is standing still – the energy market can quickly change the playing field.
• There is no exact figure for how much the mortgage rate has risen – it is about an ongoing trend, not a fixed percentage for everyone.