PA’s Svend Ulrik Nyholm and Henrik Zeberg, finance experts, have been interviewed for an article in Jyllands-Posten. The article looks at the increasing interest on mortgage loans and how this may affect house prices. Svend Ulrik and Henrik focus on a house price model, developed by PA, which shows that the most important single factor influencing house prices in Denmark is the interest rate.
Svend Ulrik comments that Danes are particularly sensitive to price increases in real estate finance costs: “We are extremely sensitive to price increases in terms of real estate financing costs. There is no doubt that mortgage credit companies will find it necessary to minimise the sensitivity of the interest and the credit risk. However, it will have consequences.”
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