Market developments in 2016 for mortgage-credit institutions

Low interest rates, high housing prices in some parts of the country and a general improvement in the economy have boosted demand for mortgage-credit loans. Lending rose and mortgage-credit institutions improved their earnings in 2016.

Mortgage-credit lending rose by 2.6% in 2016. The increase is therefore higher than the average rate of increase of 1% per annum over the past five years. Rising lending entails rising risks, for example if interest rates go up and/or housing prices go down. Lending generally increased most in 2016 in the areas in which housing prices also increased.

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