More Swedish households consider fixing mortgage rates as interest hikes loom

An increasing number of Swedish households are considering fixing their variable-rate mortgages, according to banking giant SEB's latest Housing Price Indicator.

The proportion of homeowners looking to fix their rates has climbed from 11 percent to 15 percent in the bank's latest survey.

"The central bank's increasingly clear signals have made households realise that interest rates are on the way up. Not since early 2022, just before the Riksbank kicked off its last rate-hiking cycle, have so many considered fixing their mortgage," said SEB personal economist Américo Fernández in a press release.

At the same time, more households expect property prices to rise.

"Despite interest rates starting to tick upwards, the housing market is holding firm. Every second household now expects prices to rise. Strong economic growth, solid purchasing power, and relaxed mortgage regulations are giving households the leeway to demand housing, and for the time being, that outweighs concerns over higher interest rates," said Fernández.