Global Housing Markets Face Rising Prices and Inflation

Property prices in major Asian markets are expected to increase in the coming year, with Hong Kong projected to see the highest gains of up to 10%, reversing a long-term decline. Australia, Singapore, and Japan are also expected to see increases of 7-8%, 3%, and 2% respectively. In the UK, house prices grew by 2.9% annually as of September, with inflation rising to 2.3%, higher than expected, dampening hopes for a cut in the Bank of England's interest rate. The rising inflation and house prices suggest challenging conditions for mortgage borrowers, who might face higher rates, especially those on variable or tracker mortgages. In the U.S., the average mortgage rates have slightly increased, with the fixed-rate 30-year mortgage at 6.817%, indicating a challenging environment for homebuyers. These developments reflect a broader trend of rising housing costs globally, influenced by varied economic factors such as inflation and interest rate expectations.