ECB Says Pandemic Behavioral Shifts May Cushion Housing Market

Shifting consumer preferences due to the pandemic may help cushion euro-area property prices as interest rates rise, according to the European Central Bank.

Mortgage rates have climbed significantly in the first half of 2022, which can particularly weigh on house prices and investment when coming from an environment of low borrowing costs, ECB researchers Niccolo Battistini, Johannes Gareis and Moreno Roma said in an economic bulletin published Monday.