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If interest rates can't go any lower (and there isn't much room, unless we think negative yield mortgages are possible), and the Fed chooses to inflate the curr
by JMTQp8lwXL 6y ago
If interest rates can't go any lower (and there isn't much room, unless we think negative yield mortgages are possible), and the Fed chooses to inflate the currency (which I concur, would be a most likely response, as the alternatives have far worse consequences), then the real value of homes will decline-- though the nominal dollar value could stay the same.
- RestlessMind 6y ago> and there isn't much room, unless we think negative yield mortgages are possible Negative mortgage rates are of course possible - they happened in Denmark, for example: https://www.cnbc.com/2019/08/12/danish-bank-is-offering-10-year-mortgages-with-negative-interest-rates.html https://www.cnbc.com/2019/08/12/danish-bank-is-offering-10-y...
- JMTQp8lwXL 6y agoTo clarify, negative after fees. The Danish mortgages are not negative after fees. The question is, could we cross that line? Then the bank wouldn't be making any money on the loan.