Live from the US: Watch as a housing bubble bursts live
Key interest rates are rising and will have an impact on our personal finances and household loans. Consumer debt has hit record levels after a decade of artificially low central bank interest rates.
Some sectors, like the real estate market are very sensitive to changes in lending rates. The artificially lowened interest rates by European Central Bank in 2014 led to an unnaturally rapid recovery of the sector.
The key interest rate increase in the US began in March. We are already seeing the negative effects of the key interest rate hike on the real estate markets. The rise in it may be a sign of what we can expect from the European Central Bank when they start the same policy later in the summer.
Is the US real estate bubble about to burst?
It is more than a theory that interest rates have an impact on the real estate market. Recent data shows that even a small increase in the key rate can have a significant impact on the housing market. These are their looks:
Infographic: The impact of rising key interest rates upon the US housing market (more…)