However, interest rates on fixed-rate mortgages only change when they are renewed, and about half of all mortgages will not reset for more than a year. Some of those that will reset next year could even see their interest rate decline, depending on their term.
Improvements in the labour market, particularly stronger wage 1/2  BIS central bankers' speeches  growth, should help households adjust to higher interest rates. But clearly, this is another area we will watch closely. The second vulnerability, imbalances in the housing market, has also been affected by recent changes in government policy.