(Bloomberg) -- Most Swedish homeowners believe that the price of their dwellings will rise somewhat or remain flat a year from now, according to a survey commissioned by state-owned lender SBAB. 

The survey indicates rising optimism, with 34% now telling polling institute Kantar Sifo they expect to see the value of their homes rise in the next 12 months, up from about a fifth in the beginning of the year. Sweden’s house prices had endured a rout in 2022 brought on by rising borrowing costs and elevated inflation.

As Swedes typically have mortgage rates fixed on short terms, the Riksbank’s tightening moves have had a rapid impact on borrowers. Most of the 20% of respondents who expect prices to decline further believe that the drop will be caused by increasing mortgage rates. 

“Homeowners’ view on how prices will develop going forward remains divided, and the same is true for what factors will drive prices,” SBAB chief economist Robert Boije said in a statement. “That probably reflects a lingering uncertainty around what will happen with inflation as well as interest rates.”

The survey was conducted Nov. 20 to 22, in the days before the central bank announced that it would keep its benchmark rate unchanged at 4%.

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