[iso1631]

And if the inflation hawks are right, that's a great deal - the capital you owe, and the interest you need to pay, will vanish within a couple of years and you'll still own the house.

Banks clearly don't think there's much risk of long term high inflation.

[new_realist]

The bankers are not the ultimate buyers of mortgage bonds. The Fed is. So, these low interest rates are not a predictor of lack of inflation, but a reflection of policy. The government is taking this risk.

[sschueller]

"The government is taking this risk" meaning the Tax payer. Which is you and me but not people like Bezos or Musk.

[xxpor]

That's not how a sovereign budget works.

[conanbatt]

If inflation goes up and ratings go up, mortgages get expensive, and then housing more unaffordable.

Your debt is liquified but your house value also goes into the crapper.

[new_realist]

Over 30 years, though, your salary will go up with inflation, but your fixed rate mortgage payments will not.

[conanbatt]

And what happens to the 30% house value down at 5x leverage?