Fixed interest rate still falling
Published:
The interest rate on new mortgages fell by 0.02 percentage points to 2.51 per cent in May. The interest rate on outstanding mortgages remained stable at 2.55 per cent. The fixed interest rate on new and outstanding mortgages continued falling.
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In May, the floating rate on new mortgages to households from a sample of banks and mortgage companies fell by 0.02 percentage points to 2.51 per cent. The fixed interest rate went down by 0.16 percentage points to 2.48 per cent.
The floating rate on outstanding mortgages was stable at 2.51 per cent, while the fixed interest rate fell to 2.90 per cent.
Figure 1. Interest rates on new and outstanding loans secured on dwellings to households. Monthly sample of banks and mortage companies
New loans, floating interest rate | New loans, fixed interest rate | Loans outstanding, floating interest rate | Loans outstanding, fixed interest rate | |
May 2014 | 3.80 | 4.08 | 3.97 | 4.14 |
Jun. 2014 | 3.78 | 3.84 | 3.85 | 4.13 |
Jul. 2014 | 3.76 | 3.81 | 3.84 | 4.14 |
Aug. 2014 | 3.76 | 3.74 | 3.83 | 4.14 |
Sep. 2014 | 3.73 | 3.48 | 3.81 | 4.12 |
Oct. 2014 | 3.59 | 3.38 | 3.78 | 4.11 |
Nov. 2014 | 3.54 | 3.35 | 3.73 | 4.09 |
Dec. 2014 | 3.49 | 3.29 | 3.61 | 4.08 |
Jan. 2015 | 3.22 | 2.78 | 3.55 | 4.01 |
Feb. 2015 | 3.11 | 2.53 | 3.52 | 3.80 |
Mar. 2015 | 3.08 | 2.53 | 3.25 | 3.65 |
Apr. 2015 | 3.09 | 2.55 | 3.23 | 3.54 |
May 2015 | 3.07 | 2.6 | 3.22 | 3.46 |
June 2015 | 3.00 | 2.71 | 3.19 | 3.4 |
July 2015 | 2.87 | 2.73 | 3.15 | 3.38 |
Aug. 2015 | 2.83 | 2.7 | 2.93 | 3.36 |
Sep. 2015 | 2.78 | 2.71 | 2.91 | 3.4 |
Oct. 2015 | 2.60 | 2.61 | 2.88 | 3.33 |
Nov. 2015 | 2.57 | 2.51 | 2.77 | 3.29 |
Dec. 2015 | 2.54 | 2.51 | 2.65 | 3.28 |
Jan. 2016 | 2.55 | 2.48 | 2.64 | 3.26 |
Feb. 2016 | 2.50 | 2.39 | 2.63 | 3.24 |
Mar. 2016 | 2.48 | 2.23 | 2.61 | 3.22 |
Apr. 2016 | 2.40 | 2.22 | 2.59 | 3.20 |
May 2016 | 2.37 | 2.27 | 2.51 | 3.18 |
Jue 2016 | 2.38 | 2.26 | 2.47 | 3.16 |
July 2016 | 2.38 | 2.26 | 2.46 | 3.12 |
Aug. 2016 | 2.35 | 2.32 | 2.46 | 3.10 |
Sep. 2016 | 2.36 | 2.32 | 2.45 | 3.07 |
Oct. 2016 | 2.38 | 2.46 | 2.44 | 3.03 |
Nov. 2016 | 2.43 | 2.56 | 2.45 | 2.99 |
Dec. 2016 | 2.44 | 2.70 | 2.45 | 2.96 |
Jan. 2017 | 2.47 | 2.77 | 2.53 | 2.95 |
Feb 2017 | 2.49 | 2.76 | 2.53 | 2.94 |
Mar. 2017 | 2.52 | 2.70 | 2.53 | 2.93 |
Apr.2017 | 2.52 | 2.64 | 2.53 | 2.92 |
May 2017 | 2.51 | 2.48 | 2.52 | 2.9 |
Low interest rate on loans to non-financial corporations
For new other repayment loans to non-financial corporations, the interest rate fell by 0.31 percentage points to 2.74 per cent in May, while the interest rate on outstanding loans fell by 0.07 percentage points to 3.02 per cent.
Stable deposit rates
The interest rate on deposits from non-financial corporations and the interest rate on total deposits from households were almost unchanged at 0.67 and 0.78 per cent respectively.
Increase in the interest rate margin
The interest rate margin on new mortgages to households increased by 0.05 percentage to 1.59 per cent in May, while the interest rate margin on outstanding loans increased by 0.06 percentage points to 1.63 per cent. NIBOR went down by 0.07 percentage points in the same period to 0.92 per cent.
Figure 2. Interest margins on new and outstanding loans with a mortgage to households. Sample of banks and mortgage companies
Loans margin, total outstanding loans secured on dwellings | Loans margin, new total loans secured on dwellings | NIBOR | |
May 2014 | 1.92 | 2.11 | 1.88 |
Jun. 2014 | 1.99 | 2.08 | 1.79 |
Jul. 2014 | 2.06 | 2.16 | 1.70 |
Aug. 2014 | 1.97 | 2.06 | 1.79 |
Sep. 2014 | 2.04 | 2.16 | 1.68 |
Oct. 2014 | 1.97 | 2.20 | 1.61 |
Nov. 2014 | 1.87 | 2.10 | 1.66 |
Dec. 2014 | 1.97 | 2.13 | 1.51 |
Jan. 2015 | 1.83 | 2.24 | 1.35 |
Feb. 2015 | 1.64 | 2.17 | 1.37 |
Mar. 2015 | 1.49 | 1.79 | 1.50 |
Apr. 2015 | 1.48 | 1.73 | 1.53 |
May 2015 | 1.52 | 1.76 | 1.48 |
June 2015 | 1.61 | 1.85 | 1.36 |
July 2015 | 1.57 | 1.88 | 1.29 |
Aug. 2015 | 1.67 | 1.83 | 1.15 |
Sep. 2015 | 1.64 | 1.82 | 1.14 |
Oct. 2015 | 1.49 | 1.81 | 1.11 |
Nov. 2015 | 1.37 | 1.62 | 1.20 |
Dec. 2015 | 1.38 | 1.56 | 1.15 |
Jan. 2016 | 1.36 | 1.51 | 1.19 |
Feb. 2016 | 1.43 | 1.61 | 1.07 |
Mar. 2016 | 1.45 | 1.65 | 1.02 |
Apr. 2016 | 1.38 | 1.63 | 1.01 |
May 2016 | 1.38 | 1.58 | 0.99 |
Jue 2016 | 1.34 | 1.50 | 1.03 |
July 2016 | 1.31 | 1.45 | 1.07 |
Aug. 2016 | 1.26 | 1.42 | 1.09 |
Sep. 2016 | 1.19 | 1.33 | 1.17 |
Oct. 2016 | 1.27 | 1.37 | 1.12 |
Nov. 2016 | 1.28 | 1.34 | 1.16 |
Dec. 2016 | 1.27 | 1.30 | 1.19 |
Jan. 2017 | 1.45 | 1.52 | 1.04 |
Feb 2017 | 1.44 | 1.5 | 1.06 |
Mar. 2017 | 1.54 | 1.57 | 0.99 |
Apr. 2017 | 1.54 | 1.57 | 0.99 |
May 2017 | 1.59 | 1.63 | 0.92 |
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Gudrun Haraldsdottir
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Sigbjørn Ragnar Wettre
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Ola Tveita
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