15 Countries With Highest Mortgage Rates

Published on January 31, 2024 at 4:01 pm by Maleha Afzal in Business, Economy, Lists, News

In this article, we will take a look at the 15 countries with the highest mortgage rates. If you want to skip our detailed analysis, you can go directly to 5 Countries With Highest Mortgage Rates.

“We Are Heading into A Housing Renaissance”

On January 29, Jim Tobin, Chief Executive Officer of the National Association of Home Builders, appeared in an interview on Yahoo Finance, where he discussed the outlook for mortgage rates in 2024. Tobin said that over the next six months, mortgage rates are expected to decline steeply. According to Freddie Mac, mortgage rates are closer to 6.5% than they are to 7%. Moreover, as consumer demand is expected to increase in the spring season, the outlook for housing ahead of 2024, especially over the first six months seems to be positive. Over the past few months, mortgage rates have declined by one full percentage point. Other important catalysts expected to shape the housing outlook include the vast builder incentives, including price cuts and the expected drop in mortgage rates to lower than 6%.

On January 25, Reuters reported that the sales of new single-family homes in the United States have been significantly rising due to declining mortgage rates and a shortage of owned houses in the market. Sales expanded by 8% to hit a seasonally adjusted annual rate of 664,000 units in December 2023, compared to the revised 615,000 units in November 2023. Overall, the sales of new houses expanded by 4.2% in 2023 compared to 2022. The 30-year fixed-rate mortgage experienced a steep decline in October 2023 from a 23-year high of 7.79%. The average mortgage rate was 6.6% last week, the lowest recorded since May 2023. You can also take a look at the cities where home prices are rising despite the high mortgage rates.

Prominent Mortgage Companies in the US

Mr. Cooper Group Inc. (NASDAQ:COOP), Guild Holdings Company (NYSE:GHLD), and loanDepot, Inc. (NYSE:LDI) are among the largest mortgage finance companies. Let’s discuss some recent updates from these companies. You can also take a look at the biggest mortgage companies in the US.

Mr. Cooper Group Inc. (NASDAQ:COOP) is a leading non-banking services provider for mortgage loans in the United States. The company offers its services across two segments including servicing and origination. Prominent features include originating residential mortgage loans, investor reporting, and customer services. Analysts are bullish on Mr. Cooper Group Inc. (NASDAQ:COOP). On January 10, Deutsche Bank analyst Mark Devries initiated coverage of Mr. Cooper Group Inc. (NASDAQ:COOP) with a buy rating and a price target of $88. Over the past 3 months, 6 Wall Street analysts have given a buy rating on Mr. Cooper Group Inc. (NASDAQ:COOP). Mr. Cooper Group Inc. (NASDAQ:COOP) has an average price target of $79.67 and a high forecast of $88.

Guild Holdings Company (NYSE:GHLD) is a growth-oriented mortgage company based in California, United States. The company owns a range of subsidiaries including the Guild Mortgage Company, Residential Mortgage Services, Inc., and Inlanta Mortgage, Inc. The company is also committed to giving back to the community. On January 4, Guild Holdings Company’s (NYSE:GHLD) charity organization, “The Guild Giving Foundation,” offered $500,800 to three charities in San Diego. These funds were raised from its fifth annual Charity Golf Tournament, Auction, and Dinner Social. The three charities included MyPath2Own Dedicated to Lisa Klika, Home Start, and Third Avenue Charitable Organization (TACO).

loanDepot, Inc. (NYSE:LDI) engages in the selling of mortgage and non-mortgage lending products. The company is based in California, United States. On December 19, 2023, loanDepot, Inc. (NYSE:LDI) announced that Mellohome, its real estate affiliate, launched a partnership with leading companies in the solar, home improvement, and home maintenance industry. The three key partnerships include Lumio, BOSSCAT, and HomeKeepr. The partnership is aimed at enhancing customer’s experience in home ownership. Lumio is a renewable energy solutions provider and it will leverage Mellohome’s clientele to offer its solar solutions. BOSSCAT is a real estate data platform providing customers with a network of repair solutions. Lastly, HomeKeepr is a moving services provider. The company will help Mellohome’s clients move into their new homes safely with trusted home security systems.

Now that we have discussed the mortgage outlook ahead of 2024, without further ado, let’s take a look at the 15 countries with the highest mortgage rates.

15 Countries With Highest Mortgage Rates

Our Methodology

To come up with the 15 countries with highest mortgage rates we consulted The Global Economy to source our data. The Global Economy sources its data from the central banks of each country. For our list, we aimed to assess the average mortgage rates of countries over at least 15 years, to account for any political, economic, and natural factors. To identify the top 15 countries with the highest mortgage rates we first sorted our data based on the highest latest mortgage rates. We then picked the countries with an average rating period available for at least 15 years. It is to be noted that we only included countries, inclusive of territories and islands, with a population of over 1 million, as of January 30, 2024.

The average mortgage rates for all countries in our list are based on at least 15 years of data, with some having an average of over 15 years. We have mentioned the period in our list for clarity. Our list of the 15 countries with the highest mortgage rates is in ascending order of the latest reported mortgage rate as a primary metric to maintain uniformity.

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15 Countries With Highest Mortgage Rates

15. Poland

Latest Mortgage Rate (September 2023): 7.4%

Average Mortgage Rate (January 2004 – September 2023): 5.21%

Poland is one of the countries with the highest mortgage rates in the world. The average mortgage rate between January 2004 and September 2023 was 5.21%. The lowest mortgage rate recorded within this period was 2.27% and the highest mortgage rate recorded was 8.14%.

14. Romania

Latest Mortgage Rate (September 2023): 7.56%

Average Mortgage Rate (January 2007 – September 2023): 7.87%

With a mortgage rate of 7.56% as of September 2023, Romania ranks among the countries with the highest mortgage rates. The average mortgage rate for Romania between January 2007 and September 2023 was 7.87%.

13. Australia

Latest Mortgage Rate (October 2023): 7.57%

Average Mortgage Rate (January 2000 – October 2023): 6.12%

According to our methodology, Australia ranks among the countries with the highest mortgage rates. Australia has a mortgage rate of 7.57% as of October 2023, and an average mortgage rate of 6.12% between January 2000 and October 2023.

12. New Zealand

Latest Mortgage Rate (October 2023): 7.61%

Average Mortgage Rate (December 2004 – October 2023): 6.35%

New Zealand ranks among the countries with the highest mortgage rates, with a mortgage rate of 7.61% as of October 2023. The average mortgage rate between December 2004 and October 2023 was 6.35%.

11. Latvia

Latest Mortgage Rate (September 2023): 7.75%

Average Mortgage Rate (January 2004 – September 2023): 5.3%

Latvia ranks among the countries with the highest mortgage rates. Latvia recorded a mortgage rate of 7.75% as of September 2023. The average mortgage rate in Latvia between January 2004 and September 2023 was 5.3%.

10. Ukraine

Latest Mortgage Rate (September 2023): 8.43%

Average Mortgage Rate (February 2006 – September 2023): 15.80%

With an average mortgage rate of 15.8% between February 2006 and September 2023, Ukraine ranks among the countries with the highest mortgage rates. The lowest and highest mortgage rate within the period was recorded at 0.03% and 26.75%, respectively.

9. Moldova

Latest Mortgage Rate (December 2023): 8.72%

Average Mortgage Rate (January 2008 – December 2023): 10.87%

Moldova ranks among the countries with the highest mortgage rates. The lowest and highest mortgage rate between January 2008 and December 2023 was recorded at 6.1% and 20.2%, respectively, with an average of 10.87%.

8. Costa Rica

Latest Mortgage Rate (September 2023): 9.22%

Average Mortgage Rate (December 2001 – September 2023): 14.04%

With a mortgage rate of 9.22% as of September 2023, Costa Rica ranks eighth among the countries with the highest mortgage rates. The average mortgage rate in Costa Rica between December 2001 and September 2023 was 14.04%. The minimum mortgage rate within the period was recorded at 6.11% and the highest mortgage rate was recorded at 26.28%.

7. Paraguay

Latest Mortgage Rate (September 2023): 10.28%

Average Mortgage Rate (January 2003 – September 2023): 15.58%

Paraguay ranks among the countries with the highest mortgage rates. The average mortgage rate in Paraguay between January 2003 and September 2023 was 15.58%, with a minimum mortgage rate of 7.45% and a maximum mortgage rate of 45.97%.

6. Bhutan

Latest Mortgage Rate (September 2023): 10.54%

Average Mortgage Rate (January 2008 – September 2023): 11.39%

With a mortgage rate of 10.54% as of September 2023, Bhutan ranks sixth among the countries with the highest mortgage rates. The average mortgage rate between January 2008 and September 2023 was 11.39%.

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