The nub of the household indebtedness, and its association to the housing market, from a Swedish point of view
The debt to disposable income ratio of Swedish households has the past thirty years increased radically and mortgages cover eighty percent of household’s financial liabilities. According to the Life-cycle hypothesis, households maintain a steady consumption throughout their lifetime by accumulating mortgages in early ages with the aim to repay their debts when their economy becomes stronger as the
