(Bloomberg) -- An increasing number of Swedes expect that housing prices will continue a nascent recovery as the country’s central bank has started to unwind its monetary policy tightening. 

A housing-price indicator from Sweden’s largest lender, SEB AB, rose by 9 points from 39 the previous month to 48, as 59% of respondents believe prices will gain, compared with 11% anticipating a decrease. 

The April reading, published on Monday, marks the sixth consecutive month of improving sentiment, and comes after the Riksbank decided last week to cut its benchmark rate, offering relief to borrowers who often have mortgage rates fixed on three-month terms.  

Read More: Riksbank Kicks Off Easing With First Rate Cut Since 2016

“Households show no signs of dampening their positive house price expectations,” SEB economists Américo Fernández said in a statement on Monday. “As the interest rate cuts hit their wallets, activity and turnover are expected to follow, which will give new life to house prices after two tough years.” 

The data comes as housing prices have increased for three consecutive months, in what appears to be a cautious recovery following a deep slump in 2022, when borrowing costs rose rapidly. 

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