Norway mortgage demand rises as rates fall, c.bank survey shows (updated)

Sparebank 1 Nord-Norge

06/08/2020 09:18

(Adds background, detail)
    OSLO, Aug 6 (Reuters) - Demand for mortgages in Norway rose
significantly in the second quarter, a sharp turnaround from
earlier this year amid lower interest rates that drove an upturn
in the housing market, a quarterly central bank survey showed on
Thursday.
    "Demand for first-home mortgages has risen, though less than
overall residential mortgage demand," Norges Bank said.
    In the third quarter, mortgage demand is expected to ease
slightly, the new survey showed.
    In its previous survey of the banking industry, released in
late April, Norges Bank had said the country could face its
biggest quarterly decline in mortgage demand since the financial
crisis more than a decade ago.  urn:newsml:reuters.com:*:nO9N28E01K
    But as the central bank slashed its key policy rate to zero,
the cheaper credit quickly drove an upturn in demand for
housing, with prices rising at their fastest rate in three years
in July, data released on Wednesday showed.  urn:newsml:reuters.com:*:nL8N2F72TX
    Norwegian businesses meanwhile sought slightly less credit
in the second quarter, as had been anticipated by the previous
survey, with a rebound now predicted in the time ahead.

 (Reporting by Terje Solsvik, editing by Gwladys Fouche)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70))