Banks are slow to increase rates on savings accounts, but quick to reduce them

Re:Banks are slow to increase rates on savings accounts, but... by hamilyon2 on Saturday July 25, 2020 @09:25AM (#23949008)

Biggest assymetry I noticed yet is that mortgage rates are often fixed no matter what happens to current money lending rate.

I am no financial expert, but I think unpredictable rates hugely favor consumer.

When rates are high and money is in high supply, inflation reduces the actual principal, as nominal amount Stas the same. When rates are low, you can refinance mortgage at current, low rates and reduce interest part of your mortgage.

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Re:Banks are slow to increase rates on savings accounts, but... by lotsofpulp on Saturday July 25, 2020 @11:21AM (#23949831)

The US government subsidizes the home mortgage market in the US. I don’t known of any other country offers people 30 year fixed rate mortgages.

Fixed mortgage rates help consumers because they can always refinance down to a lower rate.

[ Parent | on HN ]