Types of Mortgages. Rising interest rates are having a big impact on America because of the high % of sub prime mortgages. This means that many homeowners have got a mortgage by borrowing a high % of their disposable income. In other countries, where mortgage lending is stricter, many homeowners would have been unable to get such adverse mortgages. Therefore rising interest rates can make the difference between being able to afford mortgage payments and defaults.
In the UK rising house prices mean that more first time buyers are borrowing upto 5 or 6 times income. Therefore, mortgage payments account for a higher % of income.
It depends on ratio of Fixed vs Variable mortgages. If homeowners have a fixed rate mortgage then rising interest rates will not have any effect; at least until they come to renegotiate another fixed rate contract in 4 years time. In Europe more homeowners have a fixed rate mortgage so the European housing market is less sensitivie to interest rate changes.