Headline: Japanese Homeowners Brace for Interest Rate Changes Japan has been known for nearly cost-free mortgages for years, with homeowners accustomed to paying very low interest rates. However, the era of zero interest rates is coming to an end as the Bank of Japan has announced rate hikes and indicated plans for further increases. Most home loans in Japan have variable rates, and analysts predict rates will reach 1 percent within the next two years. This impending change is expected to lead to a substantial increase in monthly payments for homeowners, potentially impacting Japan's economy. One homeowner, Kaori Yonemoto, recalls securing a floating-rate loan at just 0.527 percent five years ago. However, she is now closely monitoring the news about the Bank of Japan and is concerned about the potential impact of higher rates on her finances. The Bank of Japan’s decision to increase rates for the first time in 17 years was based partly on the belief that consumers could handle the hit to their mortgages, given recent salary bumps from large companies. However, some experts express doubts, particularly about the impact on younger families with mortgages. Many homeowners in Japan had chosen to purchase property due to the super-low rates, like Larry Kelly, an American who opted to buy a home in Japan because of the low rate he secured. Japanese homeowners are becoming more unsettled with the rise in rates, with increased traffic to mortgage comparison websites and inquiries from concerned mortgage holders. Overall, higher mortgage rates are expected to have an impact beyond just the housing market, potentially affecting consumer spending habits and the overall economy. Some worry about a potential negative impact on consumer confidence and spending, which could further slow down Japan's already struggling economy. Overall, the shift from nearly cost-free mortgages to an era of rising interest rates is causing concern and uncertainty among Japanese homeowners as they brace for potential financial changes and impacts on the wider economy.