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Friday, September 30, 2022

Banks start raising mortgage rates

It didn’t take long for Norway’s commercial banks to boost their lending rates after the central bank, Norges Bank, raised its policy rate again on Thursday. First out was Sparebank1 Nord-Norge, which followed along with a quarter-point rise.

News service E24 reported that Sparebank1 would boost new home mortgage loans from Monday (March 28) and from May 6 for current mortgage customers. Other banks were due to follow.

Norges Bank announced a potential series of seven rate hikes by the end of next year, to keep inflation under control. It expects current mortage rates will double from current levels of around 2 percent to around 4 percent in 2024. Its economists also predict that Norway’s high housing prices will level out and even dip as a reaction to higher lending rates. Some think that’s a good thing, to cool down a hot real estate market.

newsinenglish.no staff

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