Wednesday, August 26, 2015
“Savvy” homeowners lock in fixed rates before rates fail to rise
Homeowners rush to remortgage amid fears of a rate rise as home loan approvals jump to 17-month high
So, Carney's amusement arcade in the home owner carnival is rolling them up to commit to expensive fixed rate mortgages, making them feel "savvy" whilst the banksters get off rotten rich. Sealing in necessarily expensive fixed term mortgages. Meanwhile, in the real world, deflation is setting in with oil below $40, China cratering and price indexes along with interest rates set to turn negative. Hell would freeze over before BOE raises rates until inflation gets above 1.5%. We have a long way to go.