While this may be true, it is entirely the fault of the dumb UK mortgage market that does not provide for fixed-rate mortgages for the full term of the loan. In the US, 30 year fixed rates are the norm. In the UK you’re lucky to get 5 years fixed.
How would raising interest rates affect spending in the short/medium term if loans are all fixed for 30 years?
I guess maybe the property market is more volatile in the US as a result of this since who would take on a 30 year mortgage when rates are above their long-term average? In the UK, if you're on a high rate (but a short contract), you can at least look forward to when interest rates fall.
At the cost of never being able to predict your monthly outgoings in the face of turbulent financial markets.
That's not an effect of the market; American 30-year fixed-rate mortgages reflect intense government involvement.
For so-called "conforming" loans (647k USD this year), the equivalent of which would be enough to buy a nice house almost anywhere in the UK except London, the nicer parts of the Home Counties or the South West.
That's both awesome and insane