Current Development of Mortgage Interest Rates in Sweden

During 2024, the Swedish mortgage market has been characterized by significant changes, mainly influenced by the Riksbank's monetary policy and the general economic development.

Riksbank's Interest Rate Cuts

During the year, the Riksbank has implemented several cuts to the policy rate to stimulate the economy. In December 2024, the policy rate was reduced by 0.25 percentage points to 2.50 percent, with further cuts expected in the first half of 2025. The goal is to stabilize the rate around 2.25 percent.

Forecasts for Mortgage Interest Rates in 2025 and 2026

Several banks and economic institutions have presented forecasts for the development of mortgage interest rates in the coming years:

SBAB, Swedbank, and Länsförsäkringar Bank: Predict that variable mortgage interest rates will decrease to between 2.85% and 3.20% by December 2025, and remain at similar levels throughout 2026.
Handelsbanken: Anticipates that variable mortgage interest rates will stabilize around 3.2% by the end of 2025 and 3.3% by the end of 2026.

Factors Influencing Mortgage Interest Rates

The development of mortgage interest rates is influenced by several factors, including:

Inflation: Decreasing inflation can lead to lower rates.
Economic Growth: A stronger economy can impact rates upward.
Riksbank's Monetary Policy: Direct changes in the policy rate affect mortgage interest rates.

Recommendations for Mortgage Borrowers

With the expected interest rate cuts, it may be advantageous for mortgage borrowers to consider variable rates. However, individual financial circumstances and risk appetite should always be taken into account when choosing the interest rate period.

In summary, the forecasts indicate a downward trend for mortgage interest rates in 2025 and 2026, which may bring relief to Swedish households with mortgages.

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Sweden's CPIF inflation

1,80 % +0.3%

Sweden's policy rate

2.5 % -0.25%

Sweden's national debt

1 069 426 396 798KR