The International Monetary Fund has warned of "disorderly" house price corrections in Europe, at a time when the region is struggling to bring down inflation. The IMF said that a downward correction is already underway in some European housing markets, but this decline could accelerate as central banks increase interest rates further. Mortgage payments might go up as well, as central banks increase interest rates in efforts to reduce inflation levels. Consequently, mortgage holders may have less disposable income to spend, and, in some cases, could even reach a point where they are unable to repay their credits. Banks could also struggle in an environment where repayments are not made.

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