Homeowners increase their borrowing and spending when house prices rise

News - February 2019 - No. 2

Authors Danmarks Nationalbank
Subject household balance sheets; Housing finance
Type News
Year 2019
Published 20 February 2019
Many Danish homeowners convert rising house prices into spending by increasing their mortgage debt. They do this by refinancing existing mortgages or raising additional loans, thereby translating home equity into liquid funds. Rising prices of owner-occupied homes thus provide scope for increased consumer spending or e.g. repayment of other debt.