The world mortgage machine is a truly global and very rich industry.
Worldwide i mortgages they move an impressive amount of money. In fact, in every place on the planet families but also businesses buy a mountain of properties thanks to mortgages.
In recent years the world of mortgages had become dynamic and very rich. In fact, the zero rates held by central banks around the world allowed mortgages to be extremely affordable.
The mortgage machine stops all over the world
So households and businesses have underwritten so many mortgages that have made the mortgage machine march at a frenetic pace.
Today the world is full of families who have taken out mortgages but in the meantime things have changed a lot. Indeed high inflation has come and so central banks are starting to raise rates. This means that mortgages become much more inconvenient and so bad news comes from the United States. Apparently, the mortgage machine is gaining momentum in the United States precisely because the rates are starting to get too high and families give up on the idea of buying a house with a mortgage.
Too many risk
It’s about a double bomb. It is a bomb when it comes to the credit sector But it is also a bomb when it comes to the real estate sector. Let’s see why. The world of mortgages is a very rich world as regards banks and the entire credit sector and moves a real river of money. Mortgages are also fundamental for the real estate sector. In fact, the real estate sector is so dynamic precisely because many families can easily buy a house thanks to mortgages.
Families and businesses hanging by a thread
If the world of mortgages stops due to prohibitive rates, both the banks and the real estate sector will have the sting. Many even speak of the danger of a bubble bursting similar to that of 2008. It is not clear whether the situation is actually looming it is precisely that of a bursting of the housing bubble like the one that occurred in 2008 but surely the slowdown in mortgages in the United States and the protests of Italian families over mortgages that are becoming increasingly inconvenient are a bad signal for the industry.
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