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US Housing In Focus As 60,000 Deals Fall Through Amid Record Costs
The September FOMC meeting isn't the only thing on the schedule in the US this week, although it'll probably feel like it.
Also on deck are key updates on the US housing market at yet another critical juncture.
By now, the narrative is all too familiar. Elevated mortgage rates are suppressing demand, but unfortunately, they're also limiting supply. If you have a four- or five-handle mortgage (to say nothing of a two- or three-handle), you're not going to happily trade it for a seven-handle, wh
Why does nobody talk about changing the rules of the mortgage market to require portability of loans? Of course this won’t help first time home buyers, but everybody who already has a home and who wants to move for one reason or another is currently frozen. If loans were portable, this unnecessary friction in the market would be removed.
Most mortgages in Canada are portable.
I should add to that, they are portable but almost all mortgages in Canada are 5 years or less. Most banks do offer a 7 and 10 year rate but customers rarely choose those. A lot of mortgages extremely low rate mortgages are going to come due in the next 1-2 years.
Unnecessary for whom. In tight markets banks live off fees and their elimination cuts returns for the mortgagor. Why would they give that up? Friction = $$$.