Lower interest rates on housing loans

Norway TodayPicture from Bærum city.Photo Norway Today Media

The interest rate on new mortgages to households fell by 0.05 percentage points in February 2016, while the interest rate on outstanding mortgages fell by 0.02 percentage points. Banks’ loan margins increased again after falling in recent periods.

In February 2016, the floating interest rate on households’ new mortgages from a sample of banks and mortgage companies fell by 0.05 percentage points to 2.50 per cent, while the fixed interest rate on new mortgages fell by 0.11 percentage points to 2.41 per cent. In the same period, the fixed interest rate on households’ outstanding mortgages fell by 0.02 percentage points to 3.24 per cent, while the floating interest rate on households’ outstanding mortgages was virtually unchanged at 2.63 per cent.

Increased interest rate margin on outstanding mortgages
In February 2016 the interest rate margin on new mortgages to households from a sample of banks and mortgage companies increased by 0.07 percentage points to 1.43 per cent after falling in recent periods. The corresponding interest rate margin on outstanding loans increased by about 0.10 percentage points to 1.61 per cent. In the same period, NIBOR fell by 0.12 percentage points to 1.07 per cent.

Unchanged interest rates on loans to non-financial corporations
For new and outstanding other repayment loans to non-financial corporations, the interest rates were virtually unchanged at 2.80 and 3.18 respectively in the same period.

Stable deposit rates
The interest rates on total deposits from households and non-financial corporations were stable at 0.85 and 0.78 per cent respectively in February 2016.

 

Source: NTB scanpix / Norway Today

 

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