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Still low interest rates to wait

This with political unrest and uncertainty around the world is probably based primarily on Donald Trump. He is an unpredictable factor that can affect the whole world and also Sweden.

He has already begun his work to get through a number of rather controversial decisions and there may be more prospects ahead.

Low interest rates in the future

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The Loan and Credit has set a very low repo rate and it has been at a negative level for a long time now. However, it looks like it will remain low for several years to come. Their own forecast says that the interest rate may even be lower in 2017 and at the beginning of 2018 they expect an interest rate of -0.53 percent.

However, sometime in 2018 there may be increases and in the first quarter of 2019, interest rates of -0.02 per cent are expected. One year later in early 2020, the forecast says the interest rate will be +0.49 percent. This means that we will probably have a negative interest rate in early 2019 – which would be the next two years. Even though the interest rate then goes up to plus, it can still be counted as low for another one or two years.

So the summation is that you can expect very low interest rates for at least a couple of years and fairly low interest rates for three or four years. After that, it is harder to say what will happen, but it is conceivable that the interest rate will rise at a fairly slow rate.

How to do with the mortgage?

How to do with the mortgage?

Low interest rates mean that mortgages will continue to be cheap. It looks to be very stable for two or three years to come, so you don’t have to worry so much.

One thing to keep in mind is that you can advantageously try to save some extra money now that the interest rate is low so that you have an interest buffer until the interest rate level rises.

When it comes to the question of whether to tie up your loans now when the interest rate is low, the answer is that variable interest rates are usually cheaper but that it is obviously not wrong to tie up your loans if you think it is worth paying a little extra for that security.

It is usually more expensive with fixed interest rates

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But you get a little extra insurance, which some people think is nice.

There is no huge difference between the variable interest rate and fixed interest rates with a term of one, two or three years. So it is quite good to tie the loan in such a short time without it costing so much extra.

However, as I said, we have just found out from the Loan and Credit that interest rates are expected to be very low in the next three years, so it is not very likely that mortgage rates will go up so much within this time period.

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