[LatteLazy]

The majority of people already own houses and have mortgages. That means they don't want interest rates to go up. So the Fed will not allow that.

That's it, that is the reason banks were bailed out in the first place. That's the reason they're being subsidised now (plus lots of cheap money pushes up the stock market and spurs investment and looks good at election time).

This isn't about economics. It's about politics.

[ls612]

The vast majority of mortgages out there today are fixed rate, not adjustable rate. That means that the interest homeowners are paying is locked in regardless of the rates in the market today.

[wutbrodo]

Most homeowners still have a substantial amount of leverage though, and you can refinance every X years. On top of that, rising rates reduce house values.

Most of my parents' net worth is in either residential or investment real estate, and low rates are very much good for them.

[freejulian85]

> The majority of people already own houses and have mortgages.

The majority of boomers maybe own houses. Exclude them and your claim isn’t even close to true.

Regardless, this entire situation is a huge moral hazard. I think the majority of us wouldn’t approve of the fed deciding winners and losers.