Market Trends of Home Loan Industry
Turkey has the Highest Mortgage Interest Rate
Turkey had the highest mortgage interest rates, which would have significant implications for the home loan market and the overall real estate sector in the country. state-owned banks have dominated the housing finance market in Turkey. Mortgage interest rates and house prices are undoubtedly significantly essential elements of any housing market and driving housing demand and supply factors. Due to sharp increases in raw materials globally and also supply problems, the construction sector slowed down while prices increased dramatically. Mortgage interest rates in Turkey are average four times higher than those in the US, which is the leading country in terms of its primary and secondary mortgage market sizes globally. On the other hand, the mortgage market share in GDP is too low in Turkey compared to other countries with well-developed mortgage systems.
House Prices grew Faster than Incomes in Most of the Countries.
Rapid urbanization and population growth in certain areas have increased the demand for housing. This increased demand, coupled with limited land availability and regulatory constraints, lead to higher prices. Persistently low-interest rates in many countries have made borrowing more affordable, increasing demand for housing. This increased demand can drive up prices, especially in areas with limited supply. Real estate is often seen as an attractive investment option, leading to increased investment and speculation in the housing market. This can drive up prices, particularly in popular or desirable locations. Government policies and regulations related to zoning, land use, construction permits, and taxation can impact housing supply and affordability. In some cases, these policies may contribute to the rising prices relative to incomes.
