Re: The Trillion-dollar bet

[Daniel Davies <dsquared@xxxxxxxxxxxxxxxx>]

I've done a bit of work on this in the UK context (where the variable rate
mortgage is the standard) and as far as I can see, the percentage of new
mortgages taken out at fixed versus floating rates forecasts the interest
rate cycle pretty well.  The mass market of mortgage borrowers actually do
at least as well as professional forecasters.

dd

-----Original Message-----

American homeowners have made a trillion-dollar bet that mortgage rates
will remain near record lows for at least a few more years. --