> While this may be true, it is entirely the fault of the dumb UK mortgage market

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.