Collapse of the mortgage market in Europe

Mortgage volumes in Europe have collapsed. Buyers can no longer finance themselves with loans at the level of previous years due to significantly higher interest rates.

And yet, the ECB has not yet spoken its last word on tightening monetary policy.

Raising interest rates further will neither stop inflation nor prevent the real estate market’s collapse.

The ECB is helpless in the face of changes in the world energy market and is in a tight spot. That the first peak of inflation is behind us does not mean that the reasons for the ongoing inflation have disappeared.

Many warned several times about the real estate market, especially in China (where omens for the storm last year brought the fall of Evergarde).

Now, unfortunately, the scenario seems to be materializing. The graph speaks more than words.