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The inverse does not hold true at all. Homeowners have locked in 3% mortgages that they would surrender if they sold but buyers would have to take out a 8% mort
by esoterica 3y ago
The inverse does not hold true at all. Homeowners have locked in 3% mortgages that they would surrender if they sold but buyers would have to take out a 8% mortgage to buy the same house. It’s both a bad time to buy and a bad time to sell because every transaction creates a huge deadweight loss that is economically negative for both parties.
- JumpCrisscross 3y ago> inverse does not hold true at all. Homeowners have locked in 3% mortgages that they would surrender if they sold but buyers would have to take out a 8% mortgage to buy the same house We're comparing renting to buying. Renting doesn't require a mortgage.
- esoterica 3y agoBut selling means buying back a deeply discounted loan at par value, which is bad.