Global housing prices are forecast to rise in the year ahead, but mortgage risks are rising too, says Fitch Ratings.
In a new report, the rating agency said that it expects global home prices to increase “modestly” in 2026, as both advanced and emerging markets are facing persistent supply shortages.
“Supply constraints are entrenched across both advanced and emerging markets, driven by high land, labour and material costs, and lengthy permitting or regulatory factors, supporting prices in Brazil, Canada, Germany, Mexico, the Netherlands, Spain and the U.K.,” Fitch said.
While housing demand is softening, it’s expected to remain “steady” the firm noted.
At the same time, the risks of households falling behind on their mortgages are rising too, Fitch said, “amid slower global growth, real income erosion, and heightened macro and geopolitical uncertainty.”
Overall, mortgage arrears remain low globally, it said, but Fitch expects conditions to deteriorate in the U.S., Mexico, Canada and Japan, “reflecting real income pressure and slower growth — exacerbated by U.S. tariffs…”