Re:Inflation rises to 7% in December (led by energy)
by Spivak on Wednesday January 12, 2022 @05:00PM
(#29913310)
Someone who owns their home by taking out a mortgage (in some sense) loves inflation because they're paying back their loan of, say 2010 dollars in 2020 dollars. Whether the interest rate on the mortgage (the cost of the mortgage) is high or low doesn't matter when it comes to this effect.
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Re:Inflation rises to 7% in December (led by energy)
by fzzzy on Wednesday January 12, 2022 @06:16PM
(#29914160)
They only love it if they get raises.
Re:Inflation rises to 7% in December (led by energy)
by Spivak on Wednesday January 12, 2022 @07:46PM
(#29915246)
Purely from the perspective of their mortgage it is at worst neutral. Sure it sucks that other goods will be increasing in cost relative to the mortgage but even if you got no raises at all over the lifetime of your mortgage and during that period there was positive inflation you are in real terms not paying any more on your mortgage than you were when you got it.
* Assuming a fixed interest rate of course. Don't put that evil on anyone.