Re:The Federal Reserve is expected to increase interest rate...
by jacquesm on Wednesday March 22, 2023 @05:23AM
(#35258652)
> they subsidise fixed 30y mortgages, which you pretty much can't get anywhere else on the planet
https://www.rabobank.nl/particulieren/hypotheek/hypotheekren...
5.44% right now, still well below the US rates (~7%).
Re:The Federal Reserve is expected to increase interest rate...
by jdlshore on Wednesday March 22, 2023 @02:02PM
(#35264816)
I can’t read that, but one of the unique features of the “standard” US 30-year fixed rate mortgage is that there’s no penalty for early payoff. As a result, it’s easy to refinance when rates go down, which is almost certain to occur during the 30-year period. This capability is priced in to the rate.
Ultimately none of the measures you mention are really relevant to inflation, as far as the Reserve would be concerned. CPI is.
The US probably has it the worst because they subsidise fixed 30y mortgages, which you pretty much can't get anywhere else on the planet because the terms of such are so insanely generous to the holder. These insulate a massive portion of the US population from immediate effects of rate rises, so the US likely has to hit harder than most other countries for the same effect on inflation.