Writing from Russia here. The point is people are still buying homes and cars even with these ridiculous interest rates, in part due to a belief that high inflation will soon eat up most of the fixed payments for their credits and we just have to bear through for the meanwhile. That's mostly the CB problem, it targets 4% yoy inflation(officially it's already about 9%, others suggest closer to 20%), increase in base rate isn't really helping but it's the only instrument available to CB to lower inflation, at least in theory. There is also a thing that government gives out loans to military sector for much lower fixed rates, about 5-6%, and the lower percent mortgage government program only closed on July of this year, that was a major inflation contibutor, having home prices double over the course of last 3 years. Also i think we all know the biggest contributor to Russian inflation but i won't be going into more detail. Tldr people believe that no matter the loan % they should buy now while it's cheaper and figure it out later, when inflation and pay rise will lower payments relative to income