This is an American-specific article, but I actually think this might be uniquely American. As from the article, people in the US with 20+ year mortgages locked in at low rates will not want to sell to buy a new home. So, that leaves new buyers who have no choice but to accept higher rates and older buyers who are unaffected by rates since they’re paying with cash.
In Canada, the maximum term on mortgages is 5 years, so there’s a rolling incentive to sell as people need to renegotiate their mortgages at higher rates. I expect a lot more turnover is happening in Canada due to rate increases that wouldn’t be happening with the longer fixed-rate mortgages available in the US.
I’m surprised stateside lenders aren’t trying widespread adjustable rate mortgages again. I guess they don’t need to screw over first-time buyers anymore since they’re no longer a sizeable proportion.
This is an American-specific article, but I actually think this might be uniquely American. As from the article, people in the US with 20+ year mortgages locked in at low rates will not want to sell to buy a new home. So, that leaves new buyers who have no choice but to accept higher rates and older buyers who are unaffected by rates since they’re paying with cash.
In Canada, the maximum term on mortgages is 5 years, so there’s a rolling incentive to sell as people need to renegotiate their mortgages at higher rates. I expect a lot more turnover is happening in Canada due to rate increases that wouldn’t be happening with the longer fixed-rate mortgages available in the US.
I’m surprised stateside lenders aren’t trying widespread adjustable rate mortgages again. I guess they don’t need to screw over first-time buyers anymore since they’re no longer a sizeable proportion.