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05 Nov 2007
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Financial markets  The Riksbank's Financial Market Statistics  

Press release from Statistics Sweden
2007-10-25 09:30 Nr 2007:263

Financial Market Statistics, September2007:
More borrowers choose fixed interest rates
The lending volume of housing credit institutions for new agreements with households was SEK 28 billion in September, which is a decrease compared to August when the volume was SEK 32 billion. In September 2006, volume was equal to SEK 29 billion. 58.4 percent of people borrowing money chose loans with a fixed rate of interest in September, compared to 54.5 percent in August. The corresponding figure for September 2006 was 47.3 percent.
The annual growth rate for total loans from MFIs to households fell slightly during September 2007 from 11.9 percent in August to 11.8 percent in September. The total lending volume to households amounted to SEK 1 898 billion in September. Housing loans from housing credit institutions to households account for the majority of the total lending volume from MFIs to households, around 71 percent. The growth rate for housing loans from housing credit institutions amounted to 12.4 percent in September, which is a reduction compared to 12.6 in August.
New agreements for lending to households from housing credit institutions, SEK millions

The annual growth rate of households' consumer credit from MFIs increased from 12.7 percent in August to 13.5 in September. The average annual growth rate has been 13.4 percent so far during the year. The outstanding volume amounted in total to SEK 130 billion.

Growth rate in money supply
The development of the two money supply measures M1 and M3 has gone in different directions. The annual growth rate for the broader money supply measure M3 increased from 14.9 percent in August to 16.3 percent in September 2007. The increase can be attributed to the further increase from August to September in the volume of outstanding securities held by the Swedish public. The volume for M3 amounted in September to SEK 1 997 billion. The growth rate for M1 fell during the period from 10.1 percent in August to 9.5 in September 2007. In total, M1 amounted to SEK 1 285 billion in September.
Money supply

The money supply measure M1 consists of notes, coins and current accounts (for example salary-linked bank accounts and other accounts in which money can in principle be withdrawn immediately). M3 consists of the components in M1 plus deposits with conditions, real repurchasing transactions (repo rates), shares in money market funds and securities with a duration of up to two years.
Lending rates to households
Lending rates from MFIs to households for new loans rose for the slightly shorter fixation periods while the longer fixation periods fell slightly. In September, the average lending rate for new loans to households was 4.95 percent which is a rise from 4.04 percent at the same time last year and from 4.80 percent in the previous month. During the past 12 month period, MFIs' new loans to households with a floating interest rate or a fixation period of up to three months has gone from 3.81 percent to 4.91 percent in September 2007, an increase of over 1 percentage point and an increase of 0.24 percentage points compared to August.
The average interest rate from housing credit institutions for all fixation periods for new loans to households amounted to 4.80 percent in September compared to 4.63 percent in August. During the same period, interest rates for equivalent loans with floating interest rates or a fixation period of up to three months rose from 4.24 percent to 4.50 percent.
Definitions and explanations
Statistics Sweden compiles monthly financial market statistics on behalf of the Riksbank.  These statistics are based on the MFI report. The MFI sector consists of banks, housing finance institutions, finance companies, institutions financed by municipalities and companies and monetary securities companies.
More about...
Information on the quality of the statistics, production methods, tables and graphs are available on Statistics Sweden's website.

Statistics Sweden, Financial Market Statistics Unit
Box 24 300
SE-104 51 Stockholm, Sweden
Fax +46 8 506 949 43
Kristian Tegbring
Tel. +46 8 506 944 97
E-mail kristian.tegbring@scb.se
Jan-Olof Elldin
Tel. +46 8 506 941 69
E-mail jan.olof.elldin@scb.se
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