Sweden’s Homeowners Report Mixed Financial Outlook Amid OECD Economic Warnings
Homeowners in Sweden report a mixed financial outlook as OECD cautions about economic risks.
Key Points
- • 25% of homeowners report improved financial situations; 20% feel worse off.
- • OECD warns of increasing economic risks linked to global uncertainty.
- • Recommendations include deregulating the rental market and removing tax subsidies.
- • Homeowners generally align their future mortgage rate expectations with SBAB forecasts.
As of June 2025, a significant survey reveals that over a quarter of Swedish homeowners believe their financial situation has improved recently, despite ongoing warnings about economic risks from the OECD. The latest survey by SBAB shows that 25% of homeowners report a better financial outlook compared to six months ago. Conversely, 20% of respondents indicated that their economic conditions have worsened. Notably, around 80% expressed no concern regarding their monthly expenses, while 20% admitted to being worried about their ability to meet bills. About 15% disclosed they might need to dip into their savings for mortgage interest payments, though 85% reported they do not foresee such actions, highlighting a diverse financial landscape among Swedish homeowners.
Amid these findings, the OECD has issued a cautionary note regarding the Swedish economy, pointing to growing risks tied to global uncertainties such as trade tensions and geopolitical factors. The OECD's chief economist, Ántonio Pereira, noted that after two years of stagnation, a shift in the economic outlook is pertinent. Recommendations from the OECD suggest deregulating the rental market and introducing municipal property tax as essential measures to foster a healthier housing market. Additionally, they propose phasing out rent controls and removing tax subsidies for homeowners, which they believe could promote housing availability for economically vulnerable groups.
The survey also found that homeowners are aligning their expectations closely with SBAB's forecasts regarding mortgage rates, anticipating a decline followed by a modest increase. Specifically, 36% expect rates between 3.0% and 3.9% in six months, while 27% foresee rates between 2.0% and 2.9%. These projections correspond with SBAB’s expectations of variable mortgage rates settling just below 3% before rising again by January 2026.
Both the SBAB survey and the OECD report emphasize the mixed financial sentiments among homeowners, with many seeing an improvement but also underscoring the challenges that lie ahead due to potential economic volatility and the need for significant policy reforms to address broader economic stability.