Quote:
Originally Posted by Leondros
Can you tell me what the average consumer debt load was back then and the split between variable and fixed rate loans? Those would be large factors in terms of differences between the 80's and today. If we are in a scenario where the debt load is higher, and more variable, making them more sensitive to these increases than we are in a scenario where we don't need it to be 17 to 19% to be as impactful.
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The US is mostly 30 year fixed term mortgages because of how the fed subsidizes housing there. So it’s only lost value when forced to sell and less new buyers.
Canada with our more variable and 5 year fixed is more at risk but everyone at risk should have reupped in 2020 when rates were zero so again this should be at the margins at least for the next two years.