Question:

Which macroeconomic factors contribute to changes in mortgage rates and how does this affect housing prices in Sweden?

Purpose:

The purpose of the thesis is to examine whether there is a real relationship between macroeconomic theory and existing historical data from various factors related to mortgage rates and the real estate market in Sweden.

Method:

The authors chose to utilize a quantitative method by collecting statistical data and econometrically analyzing the data using the IBM SPSS program. The analyses were conducted through correlation tests, multipel linjär regression, and VAR-model to identify which variables have an explanatory impact on the dependent variables of the research question. Through the analyses, the authors connect relationships with the theoretical knowledge of macroeconomics and the practical data, which further allowed room for discussion.

Result:

Through regression models and econometric tests, we discovered a relatively strong correlation between mortgage rates, housing prices and inflation. It also resulted in a negative causal relationship between the two variables which is also reinforced from established and confirmed theory about demand and supply.