• Statistical Series
• 03. May 2005
• Vol 90, Issue 21
• ISSN: 1670-5718



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Housing credit in Iceland changed markedly in 2004. The public housing loan system was changed in July 2004 which brought about a fall in mortgage rates and soon after that commercial and savings banks increased greatly their housing loans at competitive interest rates. The initial fall in mortgage rates was included in the Icelandic CPI in July but as of August 2004 it was decided that the variable real mortgage rates, used in the calculation of the simple user cost of housing, should be calculated as a five years moving average.