Working Paper: Measuring household interest-rate sensitivity in Denmark

Working Paper - November 2021 - No. 183

Authors Bech, Stine Ludvig; Hviid, Simon Juul (Danmarks Nationalbank); Mikkelsen, Jakob Guldbæk (Danmarks Nationalbank)
Subject Financial stability; household balance sheets; Housing finance
Type Working paper
Year 2021
Published 2 November 2021
Abstract icon We evaluate homeowners’ interest-rate sensitivity on cash flows and balance sheets of a 1 percentage point increase in interest rates. Overall, the interest-rate sensitivity is limited. However, for a subgroup of homeowners, an increase in interest rates will have a substantial effect on their cash flows and balance sheets.