Cooling housing markets
Jun 22, 2022
The rising interest rates continue to take their toll on the most risky financial assets, starting from bitcoin, over technology stocks to high yield bonds. Residential real estate prices have been remarkably resilient globally and touched new highs as we came out of the pandemic in many regions from Miami to London. As Bloomberg columnist John Authers rightly pointed out in an article yesterday, it raises the question whether “real estate is the crisis to watch now” as the 30 year mortgage rates in the US are approaching the pre-crisis high of 2006. We would not be surprised if the most hyped property markets would start cooling off.
