Cookie Consent by Free Privacy Policy Generator
6.9 C
Oslo
Wednesday, April 24, 2024

Housing market waits for rate relief

Homeowners trying to sell their homes may need to be even more patient, after Norway’s central bank decided against lowering interest rates any time soon. Most economists think rates have topped out, but rate relief isn’t expected until the autumn.

The central bank’s committee on monetary policy confirmed economic speculation that it wouldn’t lower rates at its latest meeting last week, even though inflation is starting to decline. Norway’s policy rate thus remains at 4.5 percent after a series of interest rate hikes over the past two years.

That’s led to expectations from the central bank that mortgage rates will average around 5.7 percent this year, three times what they were three years ago. At a press conference following her presentation of the lastest interest rate outlook, Norges Bank Governor Ida Wolden Bache offered some relief for both home buyers and sellers.

“The interest rate track we’re laying today indicates that rates will be cut for the first time this fall,” Bache said, “most probably in September.” She told newspaper Dagens Næringsliv (DN) that neither she nor others on the policy committee feel any pressure to cut rates, but fully understand that current rates have been cutting into housing affordability issues and having a chilling effect on the real estate market.

NewsinEnglish.no staff

LATEST STORIES

FOR THE RECORD

For more news on Arctic developments.

MOST READ THIS WEEK

Donate

If you like what we’re doing, please consider a donation. It’s easy using PayPal, or our Norway bank account. READ MORE