You are right that they wouldn’t normally exist without government intervention.
But banks don’t profit off the interest rate on mortgages. It’s mostly origination fees. Mortgages are sold off immediately. They don’t hold onto them.
But banks don’t profit off the interest rate on mortgages. It’s mostly origination fees. Mortgages are sold off immediately. They don’t hold onto them.
They only exist in the US and Denmark: https://www.thediff.co/p/the-30-year-mortgage-is-an-intrinsi...
And they only exist because of A LOT of government intervention.
If interest rates don't continue to only go down - I imagine you'll see them disappear in the US and Denmark.
US & EU banks mostly make their mortgage profits from constantly refinancing at ever lower rates.