The situation in Sweden appears to be echoing concerns seen in other parts of the world, particularly in the housing market.

by
Sharing is Caring!

Currently, existing mortgage holders in Sweden are making monthly capital repayments that are on par with the demand for new mortgage debt. This is quite an unusual scenario, and it carries bearish implications for house prices. In simpler terms, it suggests that the housing market is facing some headwinds.

Adding to this, it’s worth noting that house prices in Sweden have already declined by 12% year-on-year (Y-o-Y). This decline, combined with the current situation of mortgage repayments matching new mortgage demand, is a sign of potential further pressure on housing prices.

See also  US invests $275K in 'counter-disinformation' video games, raising public concerns and curiosity.

In a broader context, this situation in Sweden is reminiscent of conditions seen during the Euro crisis and the 2008 global financial crisis, particularly in the French mortgage lending sector. The fact that French mortgage lending is now reaching levels similar to those times raises concerns about the stability of the housing market and the overall economic conditions.

The situation in Sweden and the comparisons drawn with past crises highlight the challenges and potential risks faced by the housing market and the broader economy.

See also  Market flipped from "rush to buy before rates go up" to "wait before buying until prices go down some more". Lower rates? Nice, but who wants to buy a falling knife?



Views: 100

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.