On Friday, the reference rate for Finland’s most popular mortgage, the 12-month Euribor, was already pushing the 0.1 per cent mark.
Nearly Half of Finns have either postponed or given up their intention to buy a new home or summer cottage altogether due to accelerating inflation and rising interest rates. The result is clear from a survey commissioned by the Financial Sector.
29 per cent of respondents say that their reflection period has lengthened, and 15 per cent say they have given up their purchase intentions altogether. On the other hand, 48 percent still say that rising interest rates will have no effect on their operations.
The most cautious are those aged 30-39 and those aged 40-49. 16 per cent of those aged 40-49 say they have given up their purchase intentions and 35 per cent have postponed the acquisition. In turn, 15 per cent of 30- to 39-year-olds say they have thrown shopping pants in the trash and 36 per cent are considering buying longer.
Women are a little more cautious than men.
The results of the survey were presented at a discussion at the Financial Sector from 9 a.m. HS shows the opportunity live.
The survey was conducted as Norstat Finland’s online panel 12–18. April. The survey was conducted in 2011 by 18–79-year-olds living in mainland Finland.
Mortgages reference rates are now rising exceptionally sharply. On Friday, the reference rate for Finland’s most popular mortgage, the 12-month Euribor, was already pushing the 0.1 per cent mark.
In the eyes of those accustomed to interest rates of a few per cent, the current interest rate level is still remarkably low, but it is noteworthy that the reference rate has risen by around 0.6 percentage points in about four months.
At the same time, inflation, the rate of increase in consumer prices, has accelerated most sharply in more than 30 years. In March, consumer prices in Finland rose at an annual rate of 5.8 per cent.
Director of Labor at the financial event Mika Maliranta and the CEO of the Institute for Business Research Aki Kangasharju also tell how to secure Finland’s attractiveness as an investment destination.
“Finland is an island and when Russian trade is stalled, it is also a bagpipe,” Kangasharju said at the event.
“We have not gained any competitive advantage from stability.”
Maliranta and Kangasharju also discussed Finland’s incentive traps and their impact on Finland’s competitiveness.
“Sweden and Denmark are showing us a model of how well things can go,” Maliranta said at the event.
“There are incentive traps in Finland, but there are even more in Sweden and Denmark.”
Kangasharju said that Finland’s problem is that there are a lot of people in incentive traps.
“We have so many welfare benefits distributed to those who are well-off,” Kangasharju said.