I doubt it. Rates were so low that variable rate mortgages weren’t very popular, additionally after 2008 rates have a lifetime cap on the increase. There also aren’t mortgages that were issued either no chance of repayment, so the default risk isn’t as large as 2008.
While there could be an increase in foreclosures and a puase/decrease in home prices, it likely won’t be a massive crash like 2008.
Here were I live - Portugal - salaries are low and the house prices bubble has been unbelievably massive for almost a decade, so a majority of mortgages have variable rates: it really was the only way they could afford paying such house prices with the low salaries they get.
I’m quite curious which countries will turn out to have large mortgage powder kegs and which don’t.
I doubt it. Rates were so low that variable rate mortgages weren’t very popular, additionally after 2008 rates have a lifetime cap on the increase. There also aren’t mortgages that were issued either no chance of repayment, so the default risk isn’t as large as 2008.
While there could be an increase in foreclosures and a puase/decrease in home prices, it likely won’t be a massive crash like 2008.
Well, good for you in the US.
Here were I live - Portugal - salaries are low and the house prices bubble has been unbelievably massive for almost a decade, so a majority of mortgages have variable rates: it really was the only way they could afford paying such house prices with the low salaries they get.
I’m quite curious which countries will turn out to have large mortgage powder kegs and which don’t.