October 4, 2022

Hardwood Paroxysm

All Latest News For You!

The major global mortgage industry stops and Italian families tremble

Mortgages are a big global industry but unfortunately the increase in rates required by central banks around the world is putting it in great difficulty and Italian families are also feeling the sting effect.

Let’s see what happens. Banks Center All over the world they have been forced to raise prices aggressively. It has been years since the central bank rates It was zero and this made mortgages particularly affordable.

Pixabay

It must be borne in mind that mortgages are a huge global industry. Banks and companies that offer mortgages enrich themselves with mortgages.

A global industry stops today

In fact, these companies have managed to make huge profits through this trade. But it is also the real estate world that gets rich thanks to mortgages.

Pixabay

But if central banks around the world raise interest ratesMortgages are becoming uncomfortable and strong signals are coming from the United States Slower of the mortgage market. The US mortgage market is really big and very rich. However, this market is now slowing down because the prices are very uncomfortable: If the slowdown in the US were to hit Italy as well, the consequences for the real estate world for families would be dire. Italian families are already seeing that their mortgages are getting cheaper, and many are facing difficulties.

Rates on the rise

However, if the interest rate hike policy continues And if mortgages continue to grow exponentially Great difficulties will begin for families and the world of mortgages. Mortgage problem goes to Add up to general inflation. In fact, inflation makes life difficult for families and forces the central bank to raise interest rates. And it’s this higher rate that makes mortgages even more troublesome. Unfortunately, it’s a very tricky mechanism that risks penalizing families. Mortgages today are more troublesome, 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 be hit hard.

See also  Over 600 euros per payment envelope - Corriere.it

What do families risk?

The priority for central banks now is to raise interest rates. Therefore, for mortgages, the premium should become increasingly expensive. However, the arrival of a recession may prevent price increases and avoid further increases.