Fixed-rate mortgages limit rental income
Los bajos tipos contratados en años anteriores desincentivan ahora que millones de propietarios estadounidenses vendan sus viviendas
Many economists oppose rent controls, citing market disruption, but some argue that fixed-rate mortgages also cause distortions. In the US, nearly three-quarters of households can only afford homes under $300,000, while the median price is around $400,000. Over half of US borrowers still have mortgages with interest rates below 4%, and only a fifth pay more than 6%, with the current 30-year mortgage rate over 7%.
Fixed-rate mortgages can "trap" homeowners, reducing housing supply and sales, and some governments and institutions, like Freddie Mac, support demand for these mortgages. Some countries, like Canada, the UK, and Denmark, have alternative mortgage models that could alleviate these issues.
Written by urgent.news from El Pais Economia's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
