In this report, Finansinspektionen, Sveriges Riksbank and the Swedish National Debt Office present a general description of the driving forces behind the rise in household indebtedness. A central conclusion in the report is that indebtedness is largely linked to developments on the housing market.
Several interacting factors are contributing to the rise in house prices and indebtedness. Demand for homes and mortgages has been pushed upward by both macroeconomic factors and structural factors. Swedish banks have also been able to effectively meet households' increased demand for mortgages, which has supported the development.
However, the rate of adaptation on the market to the rising demand for housing has been slow, which has resulted rising house prices.