News may be a news article or an appetiser offering quick insight into one of Danmarks Nationalbank’s more extensive publications. The series is targeted at people who need an easy overview and like a clear angle.

Homeowners increase their borrowing and spending when house prices rise

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.