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Oh, you mean for long-term high inflation, right? I mistook that to apply to today. Someone who signed a mortgage 5 years ago should be pretty happy if their s

• lazide 4y ago
  Oh for sure, assuming they got a fixed rate. Inflation that starts AFTER the loan was written/that wasn’t priced in to the loan helps the debtor. The lender, not so much. So mortgages written today need to include the lenders best guess about future inflation, or they’ll expect to go bankrupt in the future. Which is generally a bad business practice. They also have to give competitive rates, or someone else will end up writing that loan, and they’ll be out of business due to lack of customers. As the future is unpredictable, that is of course a risky business unless they’re a special entity like the Fed that can do whatever it wants.