Mortgages are a large global industry but unfortunately the increase in rates wanted by central banks around the world is putting it in great difficulty and Italian families are also feeling the impact of this sting.
Let’s see what’s going on. The banks central around the world have been forced into vigorous rate hikes. It had been years that central bank rates they were zero and this made mortgages particularly affordable.
It must be borne in mind that mortgages are a huge world industry. The banks and companies that provide mortgages are enriching themselves with mortgages.
A global industry that is coming to a halt today
In fact, these companies manage to make large profits through this trade. But it is also the real estate world that gets rich thanks to mortgages.
However if central banks around the world raise ratesmortgages become inconvenient and strong signals are coming from the United States slowdown of the mortgage market. The mortgage market in the United States is really big and very rich. However, this market is now slowing down because the rates are highly inconvenient: if the slowdown in the United States were to infect Italy as well, the consequences for the world of real estate for families would be heavy. Italian families are already seeing their mortgages becoming cheaper and many are in difficulty.
Rates on the rise
However if the rate hike policy were to continue and if mortgages continued to grow a lot considerable difficulties would begin for families and the world of mortgages. The mortgage problem goes to add up to the more general inflation. In fact, inflation makes life difficult for families and forces the Central Bank to raise rates. It is this rate hike that makes mortgages even more inconvenient. Unfortunately, it is a very hard mechanism that risks penalizing families. Today mortgages have become more inconvenient but within certain limits. However, the fear of many is that the installment will continue rise in the coming months and that the entire mortgage market will suffer a severe blow.
What families risk
Central banks’ priority now is to raise rates. Therefore, for mortgages, the installment should become increasingly expensive. However, the arrival of the recession could block the rise in rates and avoid further increases.
–
