Norwegian households expect higher mortgage rates and rising home prices

According to the August Housing Market Barometer from NBBL, a majority of Norwegian households expect mortgage rates to be higher in one year. Specifically, 62 percent of respondents anticipate an increase in rates, while 26 percent expect them to remain unchanged. Only 12 percent believe rates will decrease over the coming year.

Despite these interest rate expectations, sentiment regarding housing prices remains largely positive. Approximately 65 percent of households expect housing prices to rise over the next twelve months, a slight decrease from 72 percent in June. Only 6 percent of respondents anticipate a decline in property prices.

NBBL Chief Economist Hilde Karoline Midsem noted that households appear to have adjusted to a reality of sustained high interest rates, stating that further increases are still a possibility. The survey, conducted by Opinion AS, involved a representative sample of 1,000 respondents aged 18 and older.