Stock markets fall in Asia on Thursday – the krona weakens – Nordea wants customers to bind mortgage rates – Cornucopia?

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Stock markets in the Asian time zones are now falling during Thursday morning and the krona is weakening. Nordea calls Swedes with variable mortgages for indoctrinated and seems to want customers to bind the interest rate, which is a sign that interest rates will fall in the future.

The Stockholm Stock Exchange retreated again yesterday with -0.12% for the large cap index OMXS30 and -0.43% for the broad index OMXSPI.

The Swedish krona weakens again and the dollar costs 10:87 SEK while the euro goes for 11:64 SEK. The gold price is found at SEK 809 per gram.

In the US, the S&P-500 was unchanged at +0.02% while the tech-heavy NAsdaq 100 went +0.32%. Within FANANGST, Spotify plummeted -7.28% while Tesla surged +12.06% despite missing forecasts, but the market apparently never stops believing that the next car model will be what can motivate the company’s share price, so it rose on the announcement of low-cost models with production starting next year.

In the Asian time zones, it is down during Thursday morning. At the time of writing, the Hang Seng is unchanged at +0.02%, as is the ASX 200 at -0.01%, but the KOSPI is down -1.40%, the Nikkei 225 is down -2.00% and the Straits Times is down -0.26%.

In an article in DN it is stated that 94% of all new mortgages in March were taken at variable interest rates Nordea calls the customers indoctrinated who choose variable interest ratesand says that there have certainly been occasions when you have profited by tying the interest rate.

Nordea’s chief economist tells DN:

“The media has almost declared the one who binds to be stupid. Despite the fact that there were definitely times when it would have been appropriate to bind.”

The chief economist points out that the Riksbank only has three reductions in its weight postulation over its own behaviour. Historically speaking, the Riksbank has not been very good at making forecasts about how they themselves should act, the so-called the national seal cone.

It can be stated that occasions existedbut they have been the highest temporary. Variable interest rates have a surcharge as an insurance premium from the bank and thus do not indicate what variable interest rates will be in the future according to the market.

In the past, before the rapid interest rate rises after 2022, there have been occasional months where you could profit from tying the interest rate and then only if you chose exactly the right time interval, for example three years. So certainly there have been occasions. But anyone who thinks they know during which short periods of time these occur can well apply for a job as chief economist at Nordea.

If you fix the interest rate, all opportunities to negotiate with the bank also cease, as well as the somewhat rarer possibility of making extra amortizations.

Rather, one can probably interpret Nordea’s idiotic explanation of the bank customers as that it is a good idea to have a variable interest rate right now if the bank thinks it should bind. For committed bank customers, it is difficult and expensive to change banks, and Nordea probably does not feel that they have the opportunity to compete.

Remember that in order for a fixed interest rate to be profitable, you have to get an average lower interest rate than a variable rate during the entire fixed period. Even the one who tied for five years early in 2022 is not sitting with the result yet, even if right now it looks good. Then I strongly postulate that we will not get the crisis interest rates back, and those who tied 2020 – 2022 will have made a good deal. But binding now, just before the Riksbank is expected to start lowering it, is a spectacularly unexpected tip from Nordea.

If we assume that everyone is right and that the fixed mortgage rates at SBAB reflect the future of floating rates, then according to them the Riksbank must lower three times, i.e. at least 0.75 percentage points. Variable interest then goes from 4.52% to 3.77% at SBAB. Then you get a fixed interest rate with SBAB of 3.70% or lower if you commit for four years or longer. At the same time, you bind yourself to a single bank in order to get a maximum of 0.07 percentage points lower interest when the Riksbank has lowered it completely and can neither negotiate nor make extra reservations.

But predicting the future is difficult, and especially predicting the future four years or longer. For that you have to work in a bank.

The figures at SBAB refer to housing for SEK 4 million and a 60% mortgage.

If you want to easily get offers for lower interest rates, you can use BankID and a few clicks to connect to Påmind (ad link), which with a few more clicks can produce offers for better mortgage interest rates.

The following is content from the blog’s partner Compricer.