SINGAPORE (EDGEPROP) - According to a market report by RealVantage, the impact of rising interest rates has already resulted in the cooling of residential markets in the US and UK. Upward inflationary pressures have pushed up housing prices and mortgage rates in the US and further reductions in housing transactions in the US real estate market are likely for the rest of this year.

See also: Rising interest rates and benchmark prices loom over the housing market this year

A real estate investment platform based in Singapore, RealVantage is a digital fractional private equity real estate platform.

The report adds that despite record high housing prices in the UK this year, climbing interest rates and the increased cost of living are expected to reduce affordability and lower housing prices for the rest of this year.

UK house prices hit a record GBP282,753 ($488,627) in March this year, but prices are likely to ease over 2H2022 and into 2023 as home buyers face higher interest rates. The UK’s annual inflation rate reached 6.2% in February this year, and the country’s central bank cautions that this figure could rise to 10% later this year.

Mortgage rates in the UK have also edged up and the typical contracted rate for a 30-year fixed mortgage has risen from 3.3% at the start of the year to 5.2% currently. This has prompted a slowdown in housing transactions in the UK.