MUMBAI: The share of residential housing loans in total advances has increased over the last eleven years to 14.2 per cent in March 2023 from 8.6 per cent in March 2012, as per the Reserve Bank’s latest Financial Stability Report (FSR).
It also said the housing sector is witnessing a healthy growth with sales growing by 21.6 per cent in the fourth quarter (January-March) of 2022-23. In addition to rising sales, new launches also maintained healthy growth, reflecting strength in demand by end-users.
The share of residential housing loans in total loans has increased over the last eleven years to 14.2 per cent in March 2023 from 8.6 per cent in March 2012, the report said.
During this period, the share of commercial real estate (CRE) in total loans has hovered between 2.0-2.9 per cent.
“Total exposure of the banking system to real estate stood at 16.5 per cent of total loans in March 2023. Given the secured nature of these loans and loan to value (LTV) ratio regulations, loan defaults remain less than 2 per cent,” it said. Pradeep Aggarwal, Founder and Chairman, Signature Global (India), said historically, Indians have shown a preference for avoiding loans, and if they do take one, their inclination is to repay it as quickly as possible.
“This approach is particularly evident when it comes to home loans, as buyers seek to clear their debts promptly. Home ownership is viewed as a source of pride and accomplishment, and individuals are motivated to avoid loan defaults and the potential loss of their homes. As a result, the non-performing asset (NPA) rate in the home loan segment remains low,” he said.
Additionally, the regulations and guidelines set by the Reserve Bank of India (RBI) pertaining to home loans play a crucial role in maintaining this low NPA rate,” Aggarwal added.
Executive chairman of Andromeda Sales V Swaminathan said the residential housing segment has experienced notable growth in demand, thanks to factors such as the implementation of RERA (Real Estate Regulation and Development Act), and the impact of the pandemic. Consequently, the share of home loans in the overall retail loan portfolio has increased. “Home loans are secured loans, often involving the borrower’s equity as down payment.
Due to the potential risk of losing their equity in case of default, borrowers generally prioritize early repayment of their home loans. As a result, the non-performing asset (NPA) rate in the home loan segment remains low,” he added. According to an RBI data, housing (including priority sector housing) loan outstanding in March 2023 was Rs 19,36,428 crore, up 15 per cent year-on-year.
The FSR further said the all-India house price index (HPI) recorded its highest increase over the last seventeen quarters (4.6 per cent y-o-y) in the fourth quarter of 2022-23.
On a sequential (q-o-q) basis, HPI has been rising over the last one year and inched up further by 0.6 per cent during January-March. It also said that during the fourth quarter of 2022-23, house sales grew by 21.6 per cent and new launches also maintained healthy growth, reflecting strength in demand by end-users as well as investors.
The rise in unsold inventory resulted in an uptick in the inventory overhang in January-March of 2022-23, it said. It noted that with strong demand for houses in the post-pandemic period, the house price gap (actual less trend) is closing after a period of around three years. A positive house price gap is an early warning of concentration of credit and vulnerability in the housing market.
As per the RBI’s ‘Basic Statistical Return on Credit by Scheduled Commercial Banks in India – March 2023’, the share of loans bearing over 9 per cent interest rate rose to 56.1 per cent in March 2023, in tandem with the monetary tightening measures starting May 2022.
The Reserve Bank started raising interest in May 2022 to rein in inflation in the wake of global supply disruptions, following the Russia-Ukraine war. Since then the benchmark short-term lending rate has increased by 250 basis points. However, the RBI did not raise the rate in its last two bi-monthly monetary policy reviews.
Satellite images analyzed by The Associated Press on Saturday showed what appeared to be a newly built military-style camp in Belarus, with statements from a Belarusian guerrilla group and officials suggesting it may be used to house fighters from the Wagner mercenary group.
The images provided by Planet Labs PLC suggest that dozens of tents were erected within the past two weeks at a former military base outside Osipovichi, a town 230 kilometers (142 miles) north of the Ukrainian border. A satellite photo taken on Jun. 15 shows no sign of the rows of white and green structures that are clearly visible in a later image, dated Jun. 30.
Wagner chief Yevgeny Prigozhin and his fighters escaped prosecution and were offered refuge in Belarus last week after Minsk helped broker a deal to end what appeared to be an armed insurrection by the mercenary group. The abortive revolt saw Wagner troops who had fought alongside Russia forces in Ukraine capture a military headquarters in southern Russia and march hundreds of kilometers (miles) toward Moscow, seemingly unimpeded.
Belarus’ authoritarian president, Alexander Lukashenko, said his country, a close and dependent ally of Moscow, could use Wagner’s experience and expertise, and announced that he had offered the fighters an “abandoned military unit” to set up camp.
Aliaksandr Azarau, leader of the anti-Lukashenko BYPOL guerrilla group of former military members, told The Associated Press by phone on Thursday that construction of a site for Wagner mercenaries was underway near Osipovichi.
Up to 8,000 fighters from Wagner’s private military force may be deployed in Belarus, a spokesperson for Ukraine’s border force told Ukrainian media Saturday. Speaking to the Ukrainska Pravda newspaper, Andriy Demchenko said Ukraine would strengthen its 1,084 kilometer (674 mile) border with Belarus in response.
Lukashenko previously allowed the Kremlin to use Belarusian territory to send troops and weapons into Ukraine. He has also welcomed a continued Russian armed presence in Belarus, including joint military camps and exercises, as well as the deployment of some of Russia’s tactical nuclear weapons there.
Demchenko told Ukrainska Pravda on Saturday that as of this week, some 2,000 troops from regular Russian army units remained stationed in Belarus.
At a Friday evening gala marking the Belarusian Independence Day, Lukashenko said that the Belarusian armed forces could benefit from training by Wagner members, and asserted that the mercenaries were “not a threat” to Belarusians.
He also declared that he was “sure” Belarus would not have to use the nuclear weapons deployed to its territory, and would not get directly involved in Moscow’s war against Ukraine.
“The longer we live, the more we are convinced that (nuclear weapons) should be with us, in Belarus, in a safe place. And I am sure that we will never have to use them while we have them, and the enemy shall never set foot on our soil,” Lukashenko said.
The average 30-year-fixed rate mortgage climbed to 3.92% for the week ending Feb. 17, up 23 basis points from the previous week. It’s the highest level since May 2019, according to the latest Freddie Mac PMMS Mortgage Survey.
A year ago, the 30-year fixed-rate mortgage averaged 2.81%. The PMMS report is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.
“Mortgage rates jumped again due to high inflation and stronger than expected consumer spending,” Sam Khater, Freddie Mac’s chief economist, said in a statement. According to him, “as rates and house prices rise, affordability has become a substantial hurdle for potential homebuyers, especially as inflation threatens to place a strain on consumer budgets.”
Mortgage rates typically move in concert with the 10-year Treasury yield, which reached 2.03% yesterday, compared to 1.94% on the previous Wednesday. The 15-year-fixed-rate mortgage averaged 3.15% last week, up from 2.93% the week prior. A year ago at this time, it averaged 2.21%.
Economists had predicted rates would increase in 2022 as the overall economy stabilized – but would still be close to record-low levels. However, rates rose faster than expected. The Mortgage Bankers Association (MBA) forecasts that 30-year mortgage rates would reach 4% by the end of 2022.
Some mortgage rate indices topped 4% late last week.
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Joel Kan, MBA’s associate vice president of economic and industry forecasting, told HousingWire that If conditions stay in the current state, we’ll certainly see higher rates.
However, rates could quickly head in the other direction, “if something abroad rocks the boat,” such as an armed conflict between Russia and Ukraine, an emergent Covid variant, or a sudden change in certain commodity prices.
So far, rising rates are impacting borrowers’ appetite.
Mortgage applications decreased 5.4% from the previous week, when rates eclipsed the 4% mark for the first time since 2019, according to the MBA survey for the week ending Feb. 11.
The seasonally adjusted refi index fell 8.9% from the previous week, bringing its share of total applications to the lowest level in 19 months. The survey showed that the refi share of mortgage activity decreased to 52.8% of total applications last week, from 56.2% the previous week.
Meanwhile, the purchase index dropped a mere 1.2% from the previous week. A heavier mix of conventional applications again contributed to another record average loan size at $453,000.
Mortgage applications decreased 13.1% for the week ending Feb. 18 to the lowest level since December 2019, as mortgage rates eclipsed the 4% mark.
The Mortgage Bankers Association‘s seasonally adjusted refi index fell 15.6% from the previous week, bringing its share of total applications to almost equal the purchases share at 50%. Meanwhile, the purchase index dropped 10.1%, falling again for the third straight week.
Compared to the same week one year ago, mortgage apps overall dropped 41%, with a sharp decline in refi (-56.4%) compared to purchase (-5.4%). The survey, conducted weekly since 1990, covers over 75% of all U.S. retail residential mortgage applications.
According to Joel Kan, MBA’s associate vice president of economic and industry forecasting, the 30-year fixed rate increased almost a full percentage point in comparison to one year ago.
The trade group estimates that the average contract 30-year fixed-rate mortgage for conforming loans ($647,200 or less) increased to 4.06% from 4.05% the week prior. For jumbo mortgage loans (greater than $647,200), rates rose to 3.84% from 3.81% the week prior.
“Mortgage applications dropped to their lowest level since December 2019 last week, as mortgage rates continued to inch higher,” Kan said. “Higher mortgage rates have quickly shut off refinances, with activity down in six of the first seven weeks of 2022.”
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The survey showed that the refi share of mortgage activity decreased to 50.1% of total applications last week, from 52.8% the previous week. VA apps rose to 9.9% from 9.3% in the same period.
The FHA share of total applications increased to 8.7% from 8.3% the prior week. Meanwhile, the adjustable-rate mortgage share of activity increased from 5% to 5.1% and the USDA held steady at 0.4%.
Purchases applications, already constrained by elevated sales prices and tight inventory, have also been impacted by higher rates, Kan said. “While the average loan size did not increase this week, it remained close to the survey’s record high.” The average loan size was at $453,000.
Economists had predicted rates would rise in 2022 as the overall economy stabilized, reducing mortgage applications.
For the coming weeks, Kan told HousingWire that If conditions stay in the current state, we’ll certainly see higher rates. However, rates could quickly head in the other direction, “if something abroad rocks the boat,” such as an armed conflict with Russia and Ukraine, an emergent Covid variant, or a sudden change in certain commodity prices.
The average 30-year-fixed mortgage rate averaged 3.89% for the week ending Feb. 24, down three basis points from the prior week, according to Freddie Mac‘s latest mortgage survey.
“Even with this week’s decline, mortgage rates have increased more than a full percent over the last six months,” said Sam Khater, Freddie Mac’s chief economist. “Overall economic growth remains strong, but rising inflation is already impacting consumer sentiment, which has markedly declined in recent months. As we enter the spring homebuying season with higher mortgage rates and continued low inventory, we expect home price growth to remain firm before cooling off later this year.”
At this time last year, the 30-year fixed-rate mortgage averaged 2.97% and originators were pumping out near-record volume, largely due to the strength of refinancings. Today, refis have mostly dried up and originators are desperately slashing costs to rescue falling margins.
Mortgage rates typically move in concert with the 10-year Treasury yield, which notched 1.94% on Wednesday, down from 2.03% the prior week. The 15-year-fixed-rate mortgage averaged 3.15% last week, up from 2.93% the week prior. A year ago at this time, it averaged 2.21%.
Mortgage applications decreased 13.1% for the week ending Feb. 18 to the lowest level since December 2019, as mortgage rates eclipsed the 4% mark.
The Mortgage Bankers Association‘s seasonally adjusted refi index fell 15.6% from the previous week, bringing its share of total applications to almost equal the purchases share at 50%. Meanwhile, the purchase index dropped 10.1%, falling again for the third straight week.
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Compared to the same week one year ago, mortgage apps overall dropped 41%, with a sharp decline in refi (-56.4%) compared to purchase (-5.4%). The survey, conducted weekly since 1990, covers over 75% of all U.S. retail residential mortgage applications.
Economists had predicted rates would gradually increase in 2022 as the overall economy stabilized – but would still be below 4% for much of the year. However, rates rose faster than expected.
Rates, however, could quickly head in the other direction given Russia’s invasion of Ukraine this week.
“Bad news for the general economy is paradoxically good for the housing market in so far as rates would decline,” Len Kiefer, deputy chief economist of Freddie Mac, told HousingWire last week.
Mortgage applications decreased 5.4% for the week ending Feb. 11, reflecting what the mortgage market looks like when rates eclipse 4% for the first time since 2019.
The Mortgage Bankers Association‘s seasonally adjusted refi index fell 8.9% from the previous week, bringing its share of total applications to the lowest level in 19 months. Meanwhile, the purchase index dropped a mere 1.2%.
Compared to the same week one year ago, mortgage apps overall dropped 39.8%, with a sharp decline in refi (-54.1%) compared to purchase (-6.8%). The survey, conducted weekly since 1990, covers over 75% of all U.S. retail residential mortgage applications.
According to Joel Kan, MBA’s associate vice president of economic and industry forecasting, an unrelenting inflationary pressure increased market expectations of more aggressive policy moves by the Federal Reserve. It moved Treasury yields and, consequently, mortgage rates higher.
The trade group estimates that the average contract 30-year fixed-rate mortgage for conforming loans ($647,200 or less) increased to 4.05% from 3.83% the week prior, above the 4% mark for the first time since 2019. For jumbo mortgage loans (greater than $647,200), rates climbed to 3.81% from 3.62% the week prior.
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“Consistent with this period of higher mortgage rates, refinance applications fell 9% last week and stood at around half of last year’s pace. The refinance share of applications was also at its lowest level since July 2019,” Kan said.
The survey showed that the refi share of mortgage activity decreased to 52.8% of total applications last week, from 56.2% the previous week. The VA apps fell to 9.3% from 10% in the same period.
The FHA share of total applications increased to 8.3% from 8% the prior week. Meanwhile, the adjustable-rate mortgage share of activity increased from 4.5% to 5% and the USDA held steady at 0.4%.
Regarding purchases applications, the modest decline over the week was mainly due to the fall in government purchase applications. “Prospective buyers still face elevated sales prices in addition to higher mortgage rates. The heavier mix of conventional applications again contributed to another record average loan size at $453,000.”
Economists had predicted rates would rise in 2022 as the overall economy stabilized, reducing mortgage applications.
For the coming weeks, Kan told HousingWire that If conditions stay in the current state, we’ll certainly see higher rates. However, rates could quickly head in the other direction, “if something abroad rocks the boat,” such as an armed conflict with Russia and Ukraine, an emergent Covid variant, or a sudden change in certain commodity prices.
Mortgage applications jumped 8.5% for the week ending March 4, as mortgage rates dropped for the first time in three months as a result of Russia’s war in Ukraine, the Mortgage Bankers Association (MBA) reported on Wednesday.
Borrowers’ demand for mortgages increased across the board. The MBA‘s seasonally adjusted refi index rose 8.5% from the previous week, with a larger gain in government refinances. Meanwhile, the purchase index was up 8.6% in the same period.
Compared to the same week one year ago, mortgage apps overall dropped 35.8%, with a sharp decline in refi (-49.9%) compared to purchase (-7.4%). The survey, conducted weekly since 1990, covers over 75% of all U.S. retail residential mortgage applications.
According to Joel Kan, MBA’s associate vice president of economic and industry forecasting, the “war in Ukraine spurred an investor flight to quality, which pushed U.S. Treasury yields lower.” Consequently, mortgage rates declined for the first time in 12 weeks, he said.
The trade group estimates that the average contract 30-year fixed-rate mortgage for conforming loans ($647,200 or less) decreased to 4.09% from 4.15% the week prior. For jumbo mortgage loans (greater than $647,200), rates dropped to 3.79% from 3.88% the week prior.
The survey showed that the refi share of mortgage activity decreased to 49.5% of total applications last week, from 49.9% the previous week. VA apps rose to 10.4% from 10.2% in the same period.
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The FHA share of total applications increased to 8.7% from 8.6% the prior week. Meanwhile, the adjustable-rate mortgage share of activity rose from 5.3% to 5.2%. The USDA went from 0.4% to 0.5%.
Regarding purchase applications, Kan said prospective buyers acted on lower rates and the early start of the spring buying season. He added: “The average loan size remained close to record highs, with higher-balance loan applications continuing to dominate growth.”
Experts told HousingWire that the turmoil could lower mortgage rates at least in the short-term, because investors often flee to safer options during periods of conflicts, such as U.S. Treasury notes, bonds and mortgage-backed securities.
On Thursday, Freddie Mac PMMS Mortgage Survey showed its rates at 3.76% for the week ending March 3, down from 3.89% in the previous week. Buyers on average bought 0.8 mortgage points.
“Looking ahead, the potential for higher inflation amidst disruptions in oil and other commodity flows will likely lead to a period of volatility in rates as these effects work against each other,” Kan said in a statement.
Stocks fell Thursday as Russian troops launched a full-scale attack in Ukraine, and at least in the short-term, the turmoil could lower mortgage rates in the U.S.
During large-scale disruptions, investors often flee to safer options, such as U.S. Treasury notes, bonds and mortgage-backed securities. All things being equal, that dynamic tends to put downward pressure on mortgage rates.
“While mortgage rates trended upward in 2022, one unintended side effect of global uncertainty is that it often results in downward pressure on mortgage rates,” said Odeta Kushi, deputy chief economist of title insurance firm First American. “The 10-year Treasury yield is down today, likely in response to the worsening Russia-Ukraine conflict, and mortgage rates may follow suit.”
Kushi also drew a parallel to the weeks following the ‘Brexit’ vote in 2016, when a declining bond yield led to a decline in mortgage rates.
But the Federal Reserve was already balancing efforts to slow inflation without cooling the economy too much. Experts expect inflation will be exacerbated by the conflict, especially in light of sanctions on Russia, an oil-producing nation.
“The two forces are at odds with each other at the moment,” said Melissa Cohn, regional vice president at William Raveis Mortgage. “Inflation will be made worse by war, not better.”
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Inflation is rising, but expectations that it will rise have not yet spun out of control, said Mark Zandi, chief economist at Moody’s Analytics.
“Inflation expectations remain anchored, but that’s the risk,” said Zandi. “Because it’s been high going on a year, if you throw Russia into the mix, with higher oil prices and higher inflation, we could hit an inflection point where those expectations become unanchored.”
How the Federal Reserve thinks about the conflict in Ukraine — how long it may last, the likelihood it will expand beyond the borders of Ukraine, and its impact on the economy — will determine how mortgage rates move in the long term. The Fed will meet again from March 15 to 16, and is expected to raise rates from 0 to 0.25%.
“If the Fed thinks the biggest impact of this disruption will be more upward inflationary pressure, then they will presumably stay the course they laid out, perhaps even accelerate it a bit,” said Jim Parrott, a non-resident fellow at the Urban Institute who was a senior economic advisor in the Obama administration. “If instead they decide that the larger impact will be to cool the economy, they might decide to move more cautiously.”
Joel Kan, an economist at the Mortgage Bankers Association, said Thursday that the trade group expects the Federal Reserve to increase rates four times this year.
“With this morning’s news on Russia, I don’t really think that that’s going to slow [The Fed] down for now,” he said. “They acknowledge that that’s a risk. But given the inflation picture, we’re going to see at least a couple of rate hikes.”
Mortgage rates fell slightly to 3.89% this week, down three basis points from the prior week, according to Freddie Mac’s weekly survey of the primary mortgage market.
The Federal Open Markets Committee said in January they expected it would “soon” be appropriate to raise the target range for the federal funds rate. It decided to keep the target range for the federal funds rate at 0 to 0.25%, but is expected to raise rates in early March.
Starting in January Fed has also tapered its monthly asset purchases. That tapering is set to conclude in March, rather than mid-year, as initially planned.
The conflict in Ukraine may have other impacts on the housing market besides potential short-term downward pressure on mortgage rates and long term inflation. Homebuilders are affected by the uncertainties brought by higher oil prices.
Stock market declines could temper homebuyer appetite for more expensive or second homes, and reduce the amount they have to make purchases.
“There are a lot more down days ahead, but it does feel like there’s no good that comes out of this from the perspective of the economy,” said Zandi. “It’s all downside. It just remains to be seen how much.”
The geography of our planet is truly unique. As far as we are aware, there’s no other planet like it with mountains, forests, living organisms, and arable land. According to statistics earth could be a one-in-a-billion Planet. According to the United Nations, life is not fair: some countries have it easier than others when it comes to geography and topography, so in this article, we are going to explore some countries with the worst geographies.
1. Mongolia
Mongolia, with its vast and rugged terrains, harsh climate, limited arable land, and lack of infrastructure, is considered one of the countries with the most challenging geographies. The country’s geography poses difficulties for agriculture, transportation, infrastructure development, and resource extraction.
Extreme and Remote
The extreme temperature variations, limited arable land, and remote locations of mining sites further compound these challenges. However, Mongolia’s population has adapted to its environment, nurturing a rich nomadic culture and a strong connection to the land. Despite the obstacles, Mongolia is working towards sustainable development and preserving its cultural heritage.
2. Haiti
Haiti’s geography presents numerous challenges, including vulnerability to natural disasters, deforestation and soil erosion, limited access to resources, economic difficulties, and overcrowded urban centers. These factors have had significant impacts on the country’s development and well-being.
Resilience and Restoration
However, the Haitian people have demonstrated resilience in overcoming adversity. Efforts to address deforestation, promote sustainable agriculture, improve infrastructure, and strengthen disaster preparedness are crucial in mitigating the effects of Haiti’s challenging geography.
3. Kuwait
Kuwait’s geography presents several challenges, including its dominant desert terrain, limited freshwater resources, extreme climate conditions, reliance on oil, and environmental concerns. The arid landscape and harsh climate make agriculture and resource management difficult.
Resourceful in the Desert
The scarcity of freshwater necessitates reliance on desalination and underground aquifers. Kuwait’s heavy dependence on oil, coupled with declining reserves, requires economic diversification. Additionally, environmental issues such as desertification and habitat depletion pose further challenges. However, Kuwaitis have demonstrated resilience and diligence in building a prosperous future.
4. Bangladesh
Bangladesh faces numerous geographic challenges, including vulnerability to flooding, cyclones, limited arable land, water management complexities, and the impacts of climate change. The country’s low-lying deltaic geography exposes it to frequent and devastating floods and cyclones.
Extreme Weather Challenges
Limited arable land and soil erosion pose challenges to food security and agriculture. Effective water management is crucial due to the complex river network. Bangladesh’s proactive approach to climate adaptation reflects its resilience. Despite these challenges, Bangladesh strives to overcome its geographic obstacles and build a more resilient and sustainable future through investments in infrastructure and sustainable practices.
5. Lesotho
Lesotho, a landlocked country in southern Africa, faces significant geographic constraints that shape its development. With a rugged mountainous landscape, limited natural resources, and water stress, Lesotho’s geography presents challenges for agriculture, trade, and economic growth. The country’s vulnerability to climate change further exacerbates these issues.
Moving Towards Sustainability
However, the people of Lesotho demonstrate resilience and are actively working towards overcoming these geographic challenges through diversification, water management, sustainable agriculture, and climate adaptation efforts. By leveraging its unique cultural heritage and human capital, Lesotho strives to forge a sustainable and prosperous future despite its formidable geography.
6. Maldives
The Maldives, with its low-lying coral islands and vulnerability to rising sea levels, faces significant geographic challenges. The limited land area, environmental fragility, import dependency, and socio-economic disparities further compound the difficulties.
Building a Strong Future
However, the Maldivian people exhibit resilience and are actively implementing measures to adapt to climate change and promote sustainability. By focusing on climate resilience, marine conservation, and sustainable tourism practices, the Maldives aims to overcome its geographical obstacles and create a prosperous future for its population.
7. Nepal
Nepal is faces several geographic challenges, such as rugged mountainous terrain, scarcity of arable land, susceptibility to natural disasters. Moreover, many communities are remote and inaccessible. The Himalayan mountain range poses obstacles to infrastructure and connectivity, while the scarcity of flat land hinders agricultural productivity. The country is prone to earthquakes, landslides, and flooding, impacting human settlements and infrastructure.
Hard-to-Reach Places
Remote communities suffer due to limited access to services and opportunities. Despite these challenges, the resilience of the Nepalese people is evident in their efforts to improve infrastructure, promote sustainable agriculture, enhance disaster preparedness, and bridge socio-economic gaps. Nepal’s progress relies on leveraging its natural beauty, investing in sustainable development, and empowering its population to overcome these geographic obstacles and build a prosperous future.
8. Uzbekistan
Uzbekistan, characterized by its arid climate, landlocked location, limited natural resources, seismic activity, and environmental concerns, faces numerous geographic obstacles. Water scarcity, transportation limitations, and earthquake vulnerability pose as obstacles to the country’s development.
Building a Better Society
However, the resilience of the Uzbek people is evident in their efforts to address these challenges through water management, economic diversification, seismic risk mitigation, and environmental conservation. Uzbekistan’s path to a prosperous future depends on embracing sustainability, investing in infrastructure, and leveraging its cultural heritage to overcome geographic hurdles.
9. Russia
Due to its immense size, extreme climatic conditions, intricate logistics, geopolitical complexities, and environmental issues, Russia has substantial geographical obstacles. The vast expanse of the country, diverse landscapes, and extreme temperatures pose formidable challenges to infrastructure, transportation, and human settlement. The abundance of natural resources requires efficient extraction and transportation systems.
Land Wars in Asia
Moreover, geopolitical complexities and border disputes add to the challenges Russia faces. Environmental issues, including pollution and the impact of climate change, also pose significant concerns. However, the resilience of the Russian people is evident in their efforts to address these challenges through infrastructure development, resource management, and environmental conservation.
10. Chile
Chile’s geography presents significant challenges, as it’s characterized by its extensive length, diverse landscapes, seismic activity, water scarcity, and inaccessibility to remote areas. The country’s elongated geographical structure presents transportation and connectivity challenges. Continuous seismic activity and volcanic hazards require ongoing efforts to strengthen resilience. The agricultural sector and the welfare of the population suffer due to water scarcity and drought.
Rural Communities
Moreover, remote regions encounter limited access to essential services and opportunities. Environmental conservation and biodiversity preservation are crucial. But by embracing innovation, protecting the environment, and fostering inclusivity, Chile can overcome its geographic obstacles and strive toward a prosperous future.
The countries with the most challenging topography face unique challenges that shape their development paths. From Mongolia’s rugged terrains to Haiti’s vulnerability to natural disasters, these countries demonstrate resilience and determination. Despite the difficulties posed by extreme climates, limited resources and inaccessibility, these nations strive for development, infrastructure, and disaster preparedness.
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Mortgage rates have been all over the place lately. They rose this week, reflecting the volatility of the U.S. economy brought by inflation and Russia’s war in Ukraine.
The average 30-year-fixed rate mortgage increased to 3.85% for the week ending March 10, up from 3.76% in the previous week, according to the latest Freddie Mac PMMS Mortgage Survey.
A year ago, the 30-year fixed-rate mortgage averaged 3.05%. The PMMS report is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit. The survey said buyers paid 0.8 mortgage points on average.
According to Sam Khater, Freddie Mac’s chief economist, over the long-term, rates will continue to rise as inflation, which spiked 7.9% in February, broadens and shortages increasingly impact many segments of the economy. “However, uncertainty about the war in Ukraine is driving rate volatility that likely will continue in the short term,” he said in a statement.
Mortgage rates usually move in concert with the 10-year Treasury yield, which reached 1.94% yesterday, compared to 1.86% on the previous Wednesday. The 15-year-fixed-rate mortgage averaged 3.09% last week, up from 3.01% the week prior. A year ago at this time, it averaged 2.38%.
Economists have said that the war in Ukraine could bring a short-term reduction in mortgage rates, as investors flock to safe haven assets like mortgage-backed securities and bonds. However, longer term inflation brought on by the conflict, mainly via oil prices, will cause mortgage rates to rise
The expectation of higher rates increases borrowers’ appetite for new loans. Mortgage applications jumped 8.5% for the week ending March 4. Compared to the same week one year ago, applications dropped 35.8%, according to the Mortgage Bankers Association (MBA).
Borrowers’ demand for mortgages increased across the board. The MBA‘s seasonally adjusted refi index rose 8.5% from the previous week, with a larger gain in government refinances. Meanwhile, the purchase index was up 8.6% in the same period.