The interest rate has reduced housing costs – Dagens Industri

The interest rate has reduced housing costs – Dagens Industri

The interest rate has reduced housing costs

                  2014-12-12 23:05
             

The fact that we got more than your wallet – but especially also falling interest rates – have pushed households’ housing costs. From a level of almost 28 per cent of disposable income in 2011 they have now fallen to 24.9 percent, a study from Demoskop Dagens Industri.

The explanation is mainly falling interest rates and rising disposable incomes. This is probably rate the biggest factor, says Jens Magnusson, private economist at SEB.

SEB has transferred 1 000 households answer questions about housing costs, calculated as rent or monthly fee, mortgage rates, mortgage payments and ongoing operating costs.

During parts of 2011 low variable mortgage rates of around 4 per cent, against today about 2 percent.