Published 20 April 2024 at 09.13
Economy. Economics journalist Claes Hemberg trusts – unlike American experts – the central banks' latest actions. “In May the interest rate will fall”, he promises in an analysis in Expressen, and predicts a “well-deserved celebration” for Swedish villa owners.
Share the article
TwittraShare
Hemberg states that the who own their homes have not been able to live as usual in recent years.
Not only have homeowners been forced to experience an unfair pause in annual price increases, but they have also been forced to pay an interest rate that is higher than the record lows interest rates that established themselves after the financial crisis.
“The biggest blow (sic) was the variable mortgage interest rate of a terrible 5.5 percent. The old mortgage (of SEK 2 million) which for a long time cost SEK 27,000 per year in interest cost now over 100,000 kroner,” notes Hemberg in a calculation example that he has published in Expressen.
Hemberg is now certain that the mortgage interest rate will be lowered in May because this week's inflation report, or the “party notice” as he calls it, showed falling numbers in Sweden.
“Falling interest rates are only good”, claims Hemberg and predicts a fall in the price of raw materials in the future.
“There we can soon feast again”, he states and claims that it is “time to bring out the party clothes” because the mortgage interest rate may fall below 4 percent already by Christmas.
However, it is unclear which raw materials will fall in price. A check of commodity prices on Friday showed oil at its highest level since the outbreak of war in Ukraine and gold at an all-time high.