andyoz
pfm Member
^^^ I wonder how many buyers actually think a decade into the future.
The chances of interest rates rising over the term of their mortgage must be nearly 100%. It's matter of when/how much.
Anyone that does think they'll increase, must assume it will inflate away. Will their salaries inflate ??
I remember fixing our mortgage at 4% in 2002 and feeling like I'd won the Lotto. Era of high interest rates my parents had to deal with was still recent history for me. I got to work paying it off early as figured things will only go up. I suspect many now have the opposite mindset that 'money's never been cheaper'. Central Banks/governments sure are reinforcing that narrative.
The chances of interest rates rising over the term of their mortgage must be nearly 100%. It's matter of when/how much.
Anyone that does think they'll increase, must assume it will inflate away. Will their salaries inflate ??
I remember fixing our mortgage at 4% in 2002 and feeling like I'd won the Lotto. Era of high interest rates my parents had to deal with was still recent history for me. I got to work paying it off early as figured things will only go up. I suspect many now have the opposite mindset that 'money's never been cheaper'. Central Banks/governments sure are reinforcing that narrative.