Survey finds many Norwegian mortgage borrowers would struggle with another rate rise

Respons Analyse carried out a survey for Sparebank 1 that examined how Norwegian mortgage borrowers would cope with further interest-rate increases. Results indicate that a considerable number of loan holders anticipate financial problems after a single additional rise, while some say they could not tolerate any increase at all. Magne Gundersen of Sparebank 1 suggests that most of these concerns will translate into tighter household budgeting rather than catastrophic loss of property.

The data have become a talking point for the Progress Party, which criticises the Labour Party for its earlier pledge of universal rate cuts. Labour’s state secretary Ellen Reitan counters by pointing to recent gains in real wages. The survey highlights the sensitivity of Norway’s housing market to monetary policy shifts.