Experts are worried about the possible collapse of the housing market: They say that such a scenario is really possible

   "As mortgage interest rates continue to rise, there are concerns about a possible housing market collapse in the US and EU. Many market experts believe that such a scenario is indeed possible. As mortgage interest rates continue to rise, there are concerns about a possible housing market collapse in the US and EU.

 

    

 

     This situation arises for very simple reasons.

 

    

 

     Higher interest rates make it more expensive to borrow money, reducing housing affordability for potential buyers. As mortgage interest rates rise, so do monthly payments. This can affect the decrease in the number of potential buyers and the overall demand for housing. What happens next? As there are fewer buyers in the market, sellers may be forced to lower their prices to attract new customers. This can create a chain effect where falling prices further reduce demand and cause a downward trend in the housing market.

 

    

 

     Another scenario is when rising interest rates make homeowners unable to make their mortgage payments, they may default. This can result in foreclosure, where the bank repossesses the property and sells it at auction. Also, homeowners can choose to sell their existing real estate at a lower price to avoid foreclosure. This collapse of the housing market could have a domino effect on the entire economy.

 

    

 

     The construction industry, which relies heavily on new home sales, will be one of the first to suffer. Job losses in this sector could lead to lower consumer spending, leading to an overall economic downturn. 

 

 

 

 According to Freedom24 analysts, the possible scenario for the US and the EU may unfold differently. The housing markets on these two continents are at different stages of the cycle, so they are not equally affected by rising interest rates.

 

    

 

     For example, the US housing market has already cooled in recent months as rising mortgage rates and inflation dampened demand. Nevertheless, the overall health of the market remains relatively good, with strong fundamentals and low inventories. On the other hand, the EU housing market is more diverse, as prices grow differently in different countries. However, rising interest rates are expected to have a greater impact on the EU housing market, as household debt is higher in many European countries.

 

    

 

     What implications could this have for the future of the housing market? As home ownership becomes less affordable, the demand for rental housing may increase, leading to higher rents. However, as home ownership may become unaffordable for younger people, they will still choose to rent, even if it is expensive, creating a new generation of renters. 

 

 

It is important to note that the extent of the housing market collapse depends on several factors, including the rate of interest rate increases, the overall health of the economy, and the supply of affordable housing." [1]

 

 

Since the rent will also be too expensive for you, you will sleep on the streets, become homeless. And we here will buy tanks for billions euros and share the kickbacks between us.