Danes Get 20-Year 0% Mortgages

api wrote: post #4

tempsy wrote: post #2

only a matter of time when we start seeing negative rates on mortgages.

If that happens house prices will go apeshit.

There's not a significant difference between a 0% and a -0.125% mortgage. If one doesn't cause weird changes to the housing market I don't expect the other to.

Re: Danes Get 20-Year 0% Mortgages

#9

Post by ghshephard » Tue, Jan 05, 2021, 5:30 PM UTC

api wrote: post #4

tempsy wrote: post #2

only a matter of time when we start seeing negative rates on mortgages.

If that happens house prices will go apeshit.

What's the argument for negative interest rates having any impact on house prices? I would think it would be mostly linear compared to 2%, 1%, 0%, -1%, etc...

For example - if I have a 20 year mortgage on a $240,000 house @ 0%, I have to pay $1,000/month. If the interest rate is -1% then I have to pay ~$900/month. I don't know if that extra $100/month really moves the market on home prices that much.

Re: Danes Get 20-Year 0% Mortgages

#10

Post by mensetmanusman » Tue, Jan 05, 2021, 5:30 PM UTC

Negative Mortgage rates would be a funny way to implement UBI. House prices go to infinity for the lifetime of the buyer.