The best chart I've seen lately on global house price risks
Given the rise in interest rates globally in 2022 and continuing into 2023, the housing sector is a major source of concern. I've argued that markets need to differentiate consumer spending outlooks for countries based on fixed/variable interest rates.This is a great chart from BCA Research showing the share of adjustable rate mortgages and also highlighting high household debt.In short, if you think there's a housing crisis coming to the US; expect armageddon elsewhere. I think a big surprise for the rest of the decade is how strong US housing remains. This article was written by Adam Button at www.forexlive.com.
Given the rise in interest rates globally in 2022 and continuing into 2023, the housing sector is a major source of concern. I've argued that markets need to differentiate consumer spending outlooks for countries based on fixed/variable interest rates.
This is a great chart from BCA Research showing the share of adjustable rate mortgages and also highlighting high household debt.
In short, if you think there's a housing crisis coming to the US; expect armageddon elsewhere. I think a big surprise for the rest of the decade is how strong US housing remains.
This article was written by Adam Button at www.forexlive.com.
