Max Fosselie (19) has just taken over his first apartment in central Kristiansand. – It is very nice that I have got my own place, says the recent home owner from Sørlandet. But with a loan he is responsible for entirely alone, he follows extra carefully which way the interest rate is going. – I would prefer not for the interest rate to rise so much, but I have calculated that it could happen. Today, Norges Bank raised the key interest rate by 0.5 percentage points to 2.25 per cent. This is the highest level since 2011. Graph showing the development in the key interest rate. Photo: Norges Bank Expected rise Since 19-year-old Max Fosselie was born in 2003, interest rates have been historically low. That time may be over. For now, Norges Bank warns that the key interest rate may rise to three per cent during the winter. – Of course I want to notice it, but that’s just the way it is. As long as I can work as much as I have expected, it should be fine, says Fosselie, who is an apprentice carpenter. – Did you take into account that interest rates would continue to rise? – I thought a little extra about it, yes, since there has been so much talk about it. So I thought it would happen. Max Fosslie is the proud owner of his first home, and believes he will be able to work enough to finance the mortgage with high interest rates. Photo: Leif Dalen – Could be easier Although many home owners have to shell out many thousands of extra pounds a year after yet another interest rate hike, the situation could be easier for first-time buyers. This is the opinion of Cecilie Langum Becker, economic commentator at news. – It is conceivable that it will be easier to enter the housing market, because the temperature is lowered and the fiercest bidding rounds will not take place, she says. House prices will fall, believes economic commentator at news, Cecilie Langum Becker. Photo: Ole Kaland / news And for those who are planning to buy their first home in the near future, the economic expert has the following advice: – The most important thing is to set a limit before you start bidding, and not to go over that limit even if it is tempting. It is easy to get carried away when you are in the middle of a bidding round. Fall in the market Through the pandemic, house prices rose a lot. Becker says the experts believe part of the upturn will be lost. – Most people believe that there will be a fall in the housing market next year. No one currently believes in a really big fall, but that prices will come down a little. For first-time buyers, the housing market may improve after the interest rate hike, say the experts. Photo: Leif Dalen
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– Would prefer not for it to increase more – news Sørlandet – Local news, TV and radio
