America Has a Mortgage Problem

 Fed has had such a hard time lowering inflation is that consumer spending has stayed strong. That’s partly because most homeowners with mortgages — who account for 40 percent of American families — have scarcely felt the effect of the Fed’s rate-raising campaign, so they haven’t curbed their spending.

Peter Coy New York Times 25 August 2023

https://www.nytimes.com/2023/08/25/opinion/fixed-rate-mortgages-inflation.html

On the other  hand, as economists like to say, 

if inflation returns to 2 percent, the real rate on new loans will be 5 percent for many years.

Englund blogg 16 August 2023

https://englundmacro.blogspot.com/2023/08/us-homeowners-now-pay-around-7-percent.html

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