Sweden's FSA says tougher mortgage rules helping cool market
STOCKHOLM, April 6 Tighter mortgage rules introduced last year in Sweden have had a cooling effect on the housing market, the country's financial watchdog said on Thursday.
"Households with new mortgages are borrowing less and are buying cheaper properties, but the risks from heavily indebted households remains," the Swedish Financial Supervisory Authority said in a statement accompanying its annual survey of the mortgage market.
The watchdog has long warned of unsustainable growth in property prices and mortgage lending. Last year, it made it mandatory for most new borrowers to pay down the principal on mortgage loans. (Reporting by Stockholm Newsroom; Editing by Simon Johnson)