Housing organizations worried about young people’s housing chances with persistently high interest rates

This means high housing costs in the coming year, estimates Carsten Henrik Pihl, one of the leaders of the consumer organization Huseierne

– The mortgage interest rate now continues to be over 6 per cent for many people. At the same time, other housing costs such as municipal taxes, insurance and maintenance costs are increasing, he says.

Pihl reminds that it is possible for the vast majority of people to negotiate down the interest rate or change banks.

Affects the young

– Although interest rates have leveled off, we see a worrying trend where the growth in applications from young borrowers persists. The proportion under the age of 24 who apply with us really started to increase when the key interest rate increased in the autumn of 2022, says Sebastian Mikolajczyk, Norway’s CEO of Bluestep Bank and Bank2.

“Bluestep Bank and Bank2 is a refinancing bank, which offers loans secured by housing to people who, for various reasons, have found themselves in demanding financial situations”, they write about themselves.

According to Mikolajczyk, the proportion has more than doubled in two years, while other age groups have remained stable.

– If the key interest rate does not start to fall soon, I unfortunately think we will see strong growth in the figures for debt collection and default among young people, he says.

– Concerned

– We are concerned that Norges Bank is waiting too long to cut interest rates, says Carl O. Geving, managing director of the Norges Eiendomsmeglerforbund.

He points out that housing investment has fallen dramatically and more than Norges Bank’s forecasts in recent years.

– This has major consequences for housing supply and employment, and it will have negative ripple effects in the economy in the coming years, estimates Geving.