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The first part of your statement would only apply if most mortgages were adjustable rate. They are not (at least in the US). ARM loans were under 10% of all loa
by mdorazio 5y ago
The first part of your statement would only apply if most mortgages were adjustable rate. They are not (at least in the US). ARM loans were under 10% of all loans in 2019 [1]. Everyone who locked in a fixed rate loan is fine until they need a new home. I would expect rising interest rates to stabilize or maybe slightly decrease market prices, not cause a massive decrease.
[1] https://www.washingtonpost.com/business/2019/02/14/adjustable-rate-mortgages-are-becoming-more-popular-with-buyers/?outputType=amp https://www.washingtonpost.com/business/2019/02/14/adjustabl...
- throwawaygh 5y agoArticle is about ECB not Fed. The 30 year fixed rate mortgage is a pretty American thing.
- ElKrist 5y agoIn France fixed rate mortgage rate is the vast majority. Only 2% of mortgage have variable rates: https://www.immobilier-danger.com/taux-immobilier.html https://www.immobilier-danger.com/taux-immobilier.html
- dgfitz 5y agoIt would however affect people with HELOCs, which I believe is tied to prime + 2%. I have no idea how many people took out a HELOC during the pandemic though.