Scandinavian Working Papers in Economics
LiU Working Papers in Economics,
Linköping University, Division of Economics, Department of Management and Engineering
No 8: Dynamic Effects of Monetary Policy and Mortgage Spreads on Housing Markets: Evidence from Swedish Regions
Filippa Ahlström (), Nadja Jakobsson (), Axel Hedström () and David Stenvall ()
Additional contact information
Filippa Ahlström: Division of Economics, Department of Management and Engineering, Linköping University, Postal: Linköping University, SE-581 83 Linköping, Sweden
Nadja Jakobsson: Division of Economics, Department of Management and Engineering, Linköping University, Postal: Linköping University, SE-581 83 Linköping, Sweden
Axel Hedström: Division of Economics, Department of Management and Engineering, Linköping University, Postal: Linköping University, SE-581 83 Linköping, Sweden
David Stenvall: Division of Economics, Department of Management and Engineering, Linköping University, Postal: Linköping University, SE-581 83 Linköping, Sweden
Abstract: This paper examines the regional effects of monetary policy and mortgage spread shocks on Swedish housing prices and transaction volume, with primary focus on regional market dynamics from national shocks. By analyzing policy rate shocks and mortgage spread shocks, this study provide insights into their distinct impacts on Sweden’s regional housing markets. Utilizing local projections and high-frequency identified monetary policy shocks, this study highlights that monetary policy shocks and fluctuations in mortgage spreads exert a noticeably greater influence on large metropolitan regions, partly due to elevated housing prices. Nevertheless, the effect is still present in less populated areas in Sweden but with more modest magnitudes, indicating that smaller regions are also susceptible to these macroeconomic forces.
Keywords: Mortgage spread; regional housing market; monetary policy; high-frequency shock identification
Language: English
37 pages, August 12, 2025
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