Author Topic: The next recession  (Read 10258 times)

marty34

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Re: The next recession
« Reply #105 on: June 22, 2022, 03:03:44 PM »
https://www.ft.com/content/64295857-45a5-4885-a2a9-344e7f249761

According to estimates published by the Fed on Friday, which are purely based on theoretical policy rules the central bank uses as guideposts but does not “mechanically” follow, interest rates should be between 4 and 7 per cent given the current economic backdrop.

If interest rates were at between 4% and 7%, a lot of keys would be handed back I'd say.

clarshack

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Re: The next recession
« Reply #106 on: June 22, 2022, 03:50:31 PM »
https://www.ft.com/content/64295857-45a5-4885-a2a9-344e7f249761

According to estimates published by the Fed on Friday, which are purely based on theoretical policy rules the central bank uses as guideposts but does not “mechanically” follow, interest rates should be between 4 and 7 per cent given the current economic backdrop.

If interest rates were at between 4% and 7%, a lot of keys would be handed back I'd say.

first got our mortgage in 2003 when interest rates were at 3.75%. I asked the mortgage advisor at the time what would happen if rates shot up like they did in the early 90's and he said the same thing that a lot of keys would be handed back, but it would be in the government's interest for that not to happen.

CiKe

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Re: The next recession
« Reply #107 on: June 22, 2022, 05:05:29 PM »
https://www.ft.com/content/64295857-45a5-4885-a2a9-344e7f249761

According to estimates published by the Fed on Friday, which are purely based on theoretical policy rules the central bank uses as guideposts but does not “mechanically” follow, interest rates should be between 4 and 7 per cent given the current economic backdrop.

If interest rates were at between 4% and 7%, a lot of keys would be handed back I'd say.

first got our mortgage in 2003 when interest rates were at 3.75%. I asked the mortgage advisor at the time what would happen if rates shot up like they did in the early 90's and he said the same thing that a lot of keys would be handed back, but it would be in the government's interest for that not to happen.

what's the story with mortgages back home? I got a variable +0.75% there about three years ago when Euribor was at around -0.5%. Switched to fixed towards start of year at 0.75% for the remaining period (22 years).

Was talking to a friend who bought in Dublin, said that banks wouldn't offer full-term fixed mortgage? Is that standard? Seems crazy.

On the other hand, with talk of giving back keys, take it then that banks are on the hook for any shortfall if repossessed house doesn't cover the loan? Can't just do that here, they'll repossess the house and you'll still be on the hook for any shortfall.

clarshack

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Re: The next recession
« Reply #108 on: June 22, 2022, 07:25:22 PM »
Last time we got a fixed mortgage rate Danske Bank wouldn't offer anymore than 5 years.
I know Nationwide had 10 year fixed deals but not sure if they still have them.