Housing Market Braces For Interest Rate Hikes?

Per square meter prices for condos in the central Stockholm region has decreased recently, according to statistics from brokers, diagram above (SEK/m^2). A temporary effect or the impact of signals from the Riksbank, the Swedish Central Bank, that interest rates are soon going to be hiked from today's record low level of 1.5% p.a. As most households here fund their house or condo at short variable rates that are closely related to the Rikbanks' repo-rate, the Bank's decision has a direct impact on households finances. Conspiratory speculation: the bank cut rates this summer even as most Riksbank Deputy Governors during the spring told they were in favor of hikes. There is a general election this year so one could ask about the extent of political influences in the Riksbank. Or perhaps the other way round, will they hike in January just to show off their independence?

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