People in some euro-paying European countries complain that it is precisely because of autonomous monetary policy that they have too expensive mortgages. And that the eurozone can enjoy much cheaper home loans. But the development of mortgage rates in the US proves that the situation can still be much worse.
Currency restriction
The massive monetary restriction that the US economy has been practised by the Federal Reserve in recent months is delivering the expected effect. However, not in the form of a steadily falling inflation rate, but in the form of a massive rise in interest rates on mortgage loans.
Indeed, the average interest rate on mortgages with a 30-year fix in the US reached 6.81 per cent, having climbed six hundredths of a percentage point over the past week. It is the highest since 2006, when the United States was slowly but surely approaching the outbreak of the mortgage crisis.
Mortgage lending falls
The decline in interest in mortgage lending decreased by more than two per cent during the last week, a decline of 39 per cent in year-on-year terms. In the case of refinancing, there was an even 86 percent year-on-year plunge, Reuters reported.
