The demand for mortgage loans in Norway fell in the fourth quarter of 2021

Houses - homes - Ullern - OsloPhoto: Lise Åserud / NTB

Norwegian banks reported a slight decline in the number of mortgage loans in the fourth quarter. Banks also earned less on such loans.

Norges Bank’s quarterly lending survey shows that there was less demand for mortgages in the fourth quarter of last year. The banks also expect this to be the case in 2022’s first quarter.

In December, Norges Bank raised its key interest rate to 0.5%, the second rate hike in 2021. It has also been announced that interest rates will continue to rise to the same level as before the corona pandemic. In line with this, the banks have also increased their lending rates.

A fall in the banks’ earning margins began after the summer, and it continued in the fall of 2021. Norges Bank writes that the banks expect lending rates to rise in the first quarter and financing costs to increase.

For non-financial corporations, the banks report unchanged demand for loans, credit practices, and lending margins in the fourth quarter, Norges Bank writes.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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