Quote:
Originally Posted by hulkrogan
Not surprised. The current real estate market has them in an interesting spot. Things have cooled themselves off enough that there might not be too big of a worry trying to slow inflation. If you raise interest rates and house prices take a big fall, you'll end up with lots of defaulted mortgages.
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I don't think that's going to happen. Or at least quickly enough that it's a concern (not saying I want rates to go up).
What percentage of people are on variable? What percentage of those are so leveraged to their rate that they go under when it changes a small amount? I don't have my mortgage calculator handy. But if rates go up 50 bps and you're on a variable (which already has you barely paying anything right now) is a 50 bps change going to annihilate the person and have them walk?
Right now I'm more concerned about the markets. OUCH