Inflation in Perspective

Inflation is down, but still too high, and interest rates should be lowered as well, right?  In the U.S., we’re enduring hardship as a result of higher prices and high borrowing costs; after all, the national average mortgage rate is now 6.91%.

Before you complain too loudly, you might consider what the citizens of some other countries are currently enduring.  Turkish consumers are dealing with an annual inflation rate of 49.38%—down from 71.6% in June.  Argentina saw consumer prices rise 237% in the year ending September 30.  

Buying a home in Russia has become more interesting since Russia’s largest mortgage lender, Sberbank, raised its mortgage rates to 28%.  That’s actually topped by the 35% interest rates assessed in Zimbabwe and 40% in Argentina.  Venezuelan would-be home owners are facing a 59.26% interest rate environment.

Other countries with healthier economies are still giving their citizens high interest rate environments.  In Brazil, mortgage rates stand at 9.46%.  Poland’s banks are assessing a 7.16% rate; in Australia, mortgages cost 7.58% a year.

But we can still envy some other nations with cheaper credit.  German homebuyers pay 3.71%; in France, the average rate is 3.43%, and in Switzerland, it’s down around 2%.  We envy some, we look down on others.

Sources:

https://www.bankrate.com/mortgages/mortgage-rates/

https://www.forbes.com/advisor/au/personal-finance/countries-with-highest-interest-inflation-rates/

https://www.pravda.com.ua/eng/news/2024/11/15/7484679/

https://www.theglobaleconomy.com/rankings/mortgage_interest_rate/

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