Hafnarfjörður takes its name (meaning "harbour fjord") from the area's excellent natural harbour. The town is first named in the medieval Landnámabók, and the earliest reports of voyages to Hafnarfjörður date from the end of the 14th century. Englishmen began trading in Hafnarfjörður in the 15th century, but German merchants followed in their wake and eventually drove the English out. In German documents, Hafnarfjörður was mentioned for the first time in 1391, and in another German document dating from 1486 the place was described as a trading place of merchants from Hamburg for the first time. The town of Hafnarfjörður became an official member of the Hanseatic League. The first Lutheran church in Iceland was raised at Háigrandi, opposite Óseyri, just outside the small boat harbour in 1533. After that, the Hanseatic traders prevailed in town until 1602, based at Hvaleyri. At this point, the Danish monarchy established a Danish trade monopoly in Iceland which lasted until late in the 18th century. During this period, Hafnarfjörður was the nation's busiest trade centre.