Most of the news that we tend to hear about the housing crisis is confined to the problems that are within the United States. Many times, we’ll get news about some of the more serious problems that are experienced in certain states, and we hear a lot of percentages thrown at us, making us feel as if the United States is the only country that is experiencing these problems. In reality, it is a worldwide problem, and although some countries may not be as bad off as the United States, others are faring far worse in the long run. An example of the worldwide problem was recently seen when Beijing released some news about their housing loans and what it is doing to their overall economy.
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Of course, the housing crisis is not something that is new in China, but it has been increasing consistently over the past year or so. According to the Peoples Bank of China, this problem is ongoing, and it is affecting new property loans considerably. When you do the conversions to United States dollars, the amount that was spent on mortgage loans in the first nine months of 2011 is just over 156 million. When you compare that with the numbers of the first nine months of 2010, you see that there is a 42.8% decrease in the amount of money that was spent. In addition, the amount of outstanding loans in this sector has increased 14.6% since last year as well.
Other financial problems have been affecting China as well, including problems with inflation and the property market, which seems to be in a shambles. A number of different policies have been put into effect in order to curb inflation and the other problems that are being experienced, but they don’t seem to be having much of an effect up to this point.
Many other countries throughout the world are seeing a similar trend in the housing market. The main problem with this is that the housing market drives the economy in many different ways, and it is an overall indicator of the financial state of things worldwide. As the housing market continues to decline, there is also concern that the commercial real estate market is not going to be far behind it. This is especially seen in the United States and similar countries where stores are closing, and nobody is paying the rent in the shopping malls. As this problem continues to go on, a clearer picture of what will eventually happen with the world economy will become more evident.
Of course, some people are using the housing market decline to their advantage by purchasing homes when they are at an all-time low. The interest rate is very low for mortgages, helping people that have kept their credit in good shape to be able to afford those homes as well. You can find a home loan that you need online, and by just filling out a single web form, you can get offers from many different lending institutions who will be competing for your business, making it easy for you to find the one that you need.