Mortgage interest rates in selected countries worldwide 2022

After a period of gradual decline, many countries worldwide have started to to slightly increase mortgage rates to tackle the threat of rising inflation after the coronavirus (COVID-19) pandemic shook the global economy. Nevertheless, as of March 2022, mortgage rates are still at some of their historical lows. In the United States, the average interest rate was approximately 4.75 percent, while in Finland, it was 0.8 percent.

Which are the leading mortgage markets?

An easy way to estimate the importance of the mortgage sector in each country is by comparing household debt depth, or the ratio of the debt held by households compared to the county's GDP. In 2020, Hong Kong, the U.S., and China had some of the highest household debt to GDP ratios worldwide. While this indicator shows the size of the sector relative to the country’s economy, the value of mortgages outstanding allows to compare the market size in different countries. In Europe, for instance, the United Kingdom, Germany, and France were the largest mortgage markets by outstanding mortgage lending.

How is new mortgage lending developing in the U.S.?

In the United States, new mortgage lending experienced an upwards trend in 2020. This is largely due to the growth of new refinance loans that allow homeowners to renegotiate their mortgage terms and replace their existing loan with a more favorable one. With interest rates rising and house prices surging, the mortgage market has has started to cool down.