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by orochimaaru 749 days ago
Yes - I don’t disagree. But provided those conditions are met I’m sure a blended rate could be arrived at that is much lower than market rate.

If the goal is to make it easier to move I think there are options. But I don’t see anyone rushing to exchange a 2.65% loan for 8%. I mean at that rate it makes more sense to rent your home than to sell it.
1 comments
frumper 749 days ago
This blending rate would just be subsidizing the have's at the expense of the have nots. It would be a market advantage to existing low rate holders going into the next 2 decades.
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orochimaaru 749 days ago
The have’s are at heavily subsidized levels anyway. Anyone who could locked in a low rate in 2020, 2021 and early 2022. I don’t think they intend to move or sell unless the rates are in their favor. Blending allows for that to be possible in a gradual manner. Otherwise we are looking at real estate gridlock for a very long time.

Blending is obviously politically uncomfortable. However, the “have’s” are already at a massive advantage.

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