Norway's housing market is under scrutiny as expected interest rate cuts and relaxed lending regulations could lead to higher property prices and increased household debt.

According to Finanstilsynet, these factors are significant vulnerabilities in the Norwegian financial system.

Although household debt has decreased relative to disposable income in recent years, it remains high.

Many borrowers are taking on large loans compared to their income and property value, raising concerns about financial stability.

The situation calls for careful monitoring to prevent potential economic imbalances.