The impact of mortgage payments on house prices and household debts (2014:5)

In connection with the financial crisis, we have seen a fall in house prices in many EU member states. At the same time, the economic decline in several countries appears to have been amplified by high household debts. In Sweden this has led to the question of amortization featuring high on the political agenda. In this report, the authors discusses the impact of mortgage payments on house prices and housing loans depending on different loan-to-value ratios, interest levels and types of mortgages.

The publication is part of SIEPS´ research project EU and EMU after the economic crisis.

Note: Publication in Swedish. English summary included.

Sebastian Johansson is an Economist and analyst at the Swedish National Board of Housing, Building and Planning (Boverket). Erik Hegelund is an Economist and analyst at the Dental and Pharmaceutical Benefits Agency (TLV). Peter Karpestam is a PhD in Economics and analyst at the Swedish National Board of Housing, Building and Planning (Boverket).