Half a million adult Swedes may have to leave their homes if the interest rate is doubled.

 

Novus: Half a million may have to move 

 

Of: 

 

Give Zangana 

 

Published: Less than 2 hours ago 

 

Updated: Less than 10 min ago 

 

Housing prices 

Half a million adult Swedes may have to leave their homes if the interest rate is doubled. 

 

This is shown by a new survey from SVT/Novus. 

 

- It is a very serious situation, says Claudia Wörmann, housing economist at SBAB. 

 

Interest rates are rising and the price of condominiums is plummeting. 

 

At the same time, a new survey from SVT/Novus shows that half a million people may have to move from their homes if interest costs double compared to today. 

 

The survey also shows that one in three Swedes must consume less to cope with increased interest costs in the future. 

 

When Novus asks how a doubling of the interest rate would affect them, 4 out of 10 people answer that they can afford it. 

 

However, seven percent say that they may have to move from their homes. - Seven percent may sound like a little, but it is about half a million adult Swedes, says Torbjörn Sjöström, CEO of Novus. 

 

Concerns are increasing 

 

Claudia Wörmann, housing economist at SBAB, says that it is a different situation that people are facing now. 

 

- It is a very serious situation. It is not only the interest rate that has slipped away, it is also fundamental factors such as electricity, food and fuel. It's not so easy to draw attention to all that, says Claudia Wörmann to Aftonbladet. 

 

However, Claudia Wörmann wants to play down the fact that half a million Swedes state that they may have to move. 

 

- I wouldn't say that. But of course, that seven percent state that they are deeply worried about this and certainly do not want to move, she says. 

 

A majority of those questioned answer that they will not have to change their consumption habits, which can possibly be explained by the fact that the economic crisis has not yet reached its peak. 

 

- The private economy hasn't actually changed that much yet. Just worry about it, says Torbjörn Sjöström. 

 

Will continue to rise 

 

Claudia Wörmann explains that many people now need to change their consumption behaviour. This may involve, for example, removing certain habits and behaviors that have caused the costs to drag on. 

 

- I think that people over a long period have gotten used to a higher standard of living. Before people have sat down and counted, you probably get very panicked, says Claudia Wörmann. 

 

How likely is it that the interest rate will double now? 

 

- Our assessment is that it will continue to rise a bit into next year. 

 

What are the consequences for the economy and the rest of society if households now need to lower their costs and consume less? 

 

- The question is whether this increase, in combination with everything else, curbs inflation. There could be consequences, I think, if we now think above all about the restaurant industry, which has had it tough during the pandemic but has now found its way back. If people reevaluate and no longer have the same opportunity, it can even affect unemployment, says Claudia Wörmann.