4 ms·

High interest rates are meant to lower inflation. That wouldn't reduce prices, but it would reduce the rate at which prices increase. It seems to be doing tha

High interest rates are meant to lower inflation. That wouldn't reduce prices, but it would reduce the rate at which prices increase. It seems to be doing that. Also, the article is talking about the FED, so looking at the mortgages from a US perspective, they don't come up for renewal. If you planned on permanently low rates, then that sounds like you have mismanaged your mortgage decisions. Rates have been at historic lows, there isn't much room to go but up.

morkalork 3y ago
I don't live in the US but the country I do live in is closely integrated with the US and follows a very similar trajectory in terms of policy decisions. "If you planned on permanently low rates, then that sounds like you have mismanaged your mortgage decisions" this is the kind of tone deaf, consumer blaming crap that is going to get our current government booted out and replaced with a regressive, populist conservative government. Hooray. But I guess they deserve it?
- tekla 3y ago
  > consumer blaming crap Is this how people refer to making poor decisions now?
  - FrustratedMonky 3y ago
    I think it is response to 2008 crash, where consumers were blamed for buying houses. "those stupid consumers, why did they buy houses with the home loans we gave them, it's their fault". Since 2008, this has become a more common refrain from the right, that consumers are to blame. https://www.youtube.com/watch?v=zp-Jw-5Kx8k https://www.youtube.com/watch?v=zp-Jw-5Kx8k https://www.cnbc.com/2014/02/24/5-years-later-rick-santelli-tea-party-rant-revisited.html https://www.cnbc.com/2014/02/24/5-years-later-rick-santelli-...
  - sigstoat 3y ago
    seems to be popular to believe that offering consumers a choice that might not be great for them is immoral and should be banned.
    - morkalork 3y ago
      Right, so, let's do things like abolish the FDA and bring back usury instead?
- bombcar 3y ago
  The USA is rare in that the 30 fixed mortgage is standard and anyone who gets an adjustable or balloon mortgage is suspected of being up to something.
- chollida1 3y ago
  > this is the kind of tone deaf, consumer blaming crap that is going to get our current government booted out and replaced with a regressive, populist conservative government. Hooray. But I guess they deserve it? But it’s also very true that they made the decisions that lead to this. I’m Canadian so I’m in a similar boat to your country. We’ve had a terrible government for thr past 10 years and they’ve made terrible spending decisions that have ruined Canada. I like your country, though, we’ll have to wait 3 more years to start to undo the damage the liberals have down to Canada so consider yourself lucky you aren’t from here:( Rates were at historical lows while a normal Historical rate was around 5%. If you planned your life around rates that were at levels never seen before then you did make a mistake and people should bear the brunt of that. That was outright gambling I’d you managed your life around rates not returning to historical norms. I feel that we should not treat people like helpless children and instead treat them like adults
- tick_tock_tick 3y ago
  USA does fixed rated mortgages to prevent issues like this. Variable rate mortgages are risky and the average customer isn't equipped to understand them.

morkalork 3y ago

I don't live in the US but the country I do live in is closely integrated with the US and follows a very similar trajectory in terms of policy decisions. "If you planned on permanently low rates, then that sounds like you have mismanaged your mortgage decisions" this is the kind of tone deaf, consumer blaming crap that is going to get our current government booted out and replaced with a regressive, populist conservative government. Hooray. But I guess they deserve it?

tekla 3y ago
> consumer blaming crap Is this how people refer to making poor decisions now?
- FrustratedMonky 3y ago
  I think it is response to 2008 crash, where consumers were blamed for buying houses. "those stupid consumers, why did they buy houses with the home loans we gave them, it's their fault". Since 2008, this has become a more common refrain from the right, that consumers are to blame. https://www.youtube.com/watch?v=zp-Jw-5Kx8k https://www.youtube.com/watch?v=zp-Jw-5Kx8k https://www.cnbc.com/2014/02/24/5-years-later-rick-santelli-tea-party-rant-revisited.html https://www.cnbc.com/2014/02/24/5-years-later-rick-santelli-...
- sigstoat 3y ago
  seems to be popular to believe that offering consumers a choice that might not be great for them is immoral and should be banned.
  - morkalork 3y ago
    Right, so, let's do things like abolish the FDA and bring back usury instead?
bombcar 3y ago
The USA is rare in that the 30 fixed mortgage is standard and anyone who gets an adjustable or balloon mortgage is suspected of being up to something.
chollida1 3y ago
> this is the kind of tone deaf, consumer blaming crap that is going to get our current government booted out and replaced with a regressive, populist conservative government. Hooray. But I guess they deserve it? But it’s also very true that they made the decisions that lead to this. I’m Canadian so I’m in a similar boat to your country. We’ve had a terrible government for thr past 10 years and they’ve made terrible spending decisions that have ruined Canada. I like your country, though, we’ll have to wait 3 more years to start to undo the damage the liberals have down to Canada so consider yourself lucky you aren’t from here:( Rates were at historical lows while a normal Historical rate was around 5%. If you planned your life around rates that were at levels never seen before then you did make a mistake and people should bear the brunt of that. That was outright gambling I’d you managed your life around rates not returning to historical norms. I feel that we should not treat people like helpless children and instead treat them like adults
tick_tock_tick 3y ago
USA does fixed rated mortgages to prevent issues like this. Variable rate mortgages are risky and the average customer isn't equipped to understand them.