Mortgage rates

The Association of Danish Mortgage Banks prepares an average indicator of bond rates on a regular basis.
 

The use of bond with different coupons means that it is difficult for borrowers to monitor the development in the average YTM (Yield-To-Maturity). The most common, dominating bonds cover only individual series and thus do not offer a comprehensive picture of the development in rates. On this background, the Association has chosen to calculate average indicators for mortgage bond rates. 

The Association publishes three bond rate indicators:

• The average short bond rate for mortgage bonds denominated in DKK 
• The average short bond rate for mortgage bonds denominated in EUR  
• The average long bond rate for mortgage bonds denominated in DKK

The bond rates offer a comprehensive view of the development in rates on the Danish mort-gage credit market. They are calculated on a weekly basis and show the average bond YTM. In other words: the bond rates show what the average yield is for investors who have bought newly issued mortgage bonds in the week in question. 

Fig.1: Average mortgage rates in percent, Denmark

Source: The Association of Danish Mortgage Banks

Updated May 2012