Shocking average increase in people’s mortgage payments over the last year. The US has seen average mortgage payments jump to £675 a month.
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The Countries With The Biggest Increase In Monthly Mortgage Payments
*Based on a non-fixed rate mortgage
The Countries With Big Interest Rate Increases In 2022
- Hong Kong has seen the highest increase in monthly mortgage payments, with a monthly difference of £1,351, resulting in a 4% interest rate increase since last year.
- The average non-fixed rate UK monthly mortgage payments have jumped by £331 a month in the last year, a 2.5% interest rate increase since last year.
- The monthly mortgage payments in the US have seen a £675 increase a month in the last year, a 3.75% increase since last year.
Mike Charalambous, Director at Invezz shared his expert insights on coping with the skyrocketing interest rates:
“While the Fed rate is short-term, the average rate on a 30-year fixed rate mortgage in the US surpassed 7% this week. That’s an astonishing jump from the 3.14% number it was at just one year ago. Housing sales are beginning to slow, yet the job market and consumer demand has not been impactfully dented by the Fed’s actions.
While this sounds good on the surface of things, it prevents inflation from coming down, with Fed policymakers acknowledging that inflation has been more persistent than originally thought, while adding that “the ultimate level of interest rates will be higher than previously expected”.
The UK’s inflation was 10.1% in September, while the pound has been getting crushed in the FX markets. Europe is also starring a recession squarely in the face. A reminder that however bad things are in the US, they are worse across the Atlantic. Although people are hurting everywhere as inflation refuses to die without a fight, rendering all those who brandished it as “transitory” highly mistaken.
With six interest rate hikes in a row, it is the sharpest rise in rates since the 80’s. Back then, they touched nearly 20%, at a time when inflation roared even louder than it is today. That is a far cry from today, when rates are between 3.75% and 4%. They are expected to rise towards 4.5% by the end of the year.”
You can find a full 2022 inflation report here, and a mortgage calculator here.
