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I don't see why you would think any of this would follow. Why would mortgages be "super low risk?". Why aren't they low now? Also lower rates means higher pri

• rorykoehler 11y ago
  They would be super low risk because everyone would have a guaranteed way of paying them every month. If you have to ask why they aren't low risk now then I assume you have no experience in being broke and not being able to make rent. High demand with unmatched supply means higher prices. Rates can influence demand but if you take the majority of rental properties out of the market because people sell them due to low rental demand it will sort itself out.
  • pc86 11y ago
    > High demand with unmatched supply means higher prices. You've just negated your own argument that home ownership is more affordable under BI. BI would increase disposable income across the board, increasing demand for purchased homes that is not necessarily coupled with an increase in supply. Prices go up overnight. And home mortgages are low risk now - rates are about 3.5% which is among the lowest you can get for any loan, especially one multiple times higher than the borrower's yearly income over multiple decades, and any responsible person will be paying their rent long after they've switched their diet to PB&Js and ramen noodles. It's the first thing coming out of every check.
    • rorykoehler 11y ago
      In the short term you are right but long term rental market could drop out as people choose to buy instead of rent freeing up lots of housing (people selling their rental investments as their returns dwindle) so that supply matches demand. Regarding low rate mortgages... you remember 2008 and the years leading up to it?