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Negative Mortgages Set Another Milestone in a No-Rate World
Posted on 8/18/19 at 12:12 pm
Posted on 8/18/19 at 12:12 pm
quote:
The world’s headlong dash to zero or negative interest rates just passed another milestone: A bank in Denmark is paying homebuyers to take out mortgages.
Jyske Bank A/S, Denmark’s third-largest lender, announced in early August a mortgage rate of -0.5%, before fees. Nordea Bank Abp, meanwhile, is offering 30-year mortgages at annual interest of just 0.5%.
LINK
Meanwhile the fed refuses to reduce rates more than 25 BPS.
6
Posted on 8/18/19 at 12:16 pm to OleWarSkuleAlum
Are these subsidized in some way? I read the article and still doesn't make sense.
Posted on 8/18/19 at 12:17 pm to OleWarSkuleAlum
By the way, fed interest rates don't directly correlate with mortgage rates in this country.
Posted on 8/18/19 at 12:34 pm to deeprig9
quote:
By the way, fed interest rates don't directly correlate with mortgage rates in this country.
Posted on 8/18/19 at 12:44 pm to deeprig9
That’s bc OP doesn’t make sense. He’s been on the Keto diet for so long it’s turned him into a soy boy.
This post was edited on 8/18/19 at 12:45 pm
Posted on 8/18/19 at 12:44 pm to OleWarSkuleAlum
quote:You quote the other poster (above) and then you link to a source which proves him correct. Why?
By the way, fed interest rates don't directly correlate with mortgage rates in this country.
I suppose you really are dumb enough to not know that the Federal Reserve doesn't set rates for 10 year treasury bonds.
Those rates are set by an open auction and potential buyers of the bonds, bidders, set the price for them and thus set the interest rate.
The Federal Reserve is not involved in that process.
Posted on 8/18/19 at 8:04 pm to OleWarSkuleAlum
Posted on 8/18/19 at 8:15 pm to OleWarSkuleAlum
If a bank pays you to take a loan, and the interest rate is negative, then they are losing money 
This doesn't make sense
This doesn't make sense
Posted on 8/18/19 at 8:29 pm to OleWarSkuleAlum
Their government has to be subsidizing this to get homeownership up
Posted on 8/19/19 at 7:46 am to HailToTheChiz
quote:
If a bank pays you to take a loan, and the interest rate is negative, then they are losing money This doesn't make sense
None of this negative interest rate stuff makes sense to me.
12 Reasons Why Negative Rates Will Devastate The World
LINK
This post was edited on 8/19/19 at 7:48 am
Posted on 8/19/19 at 7:59 am to HailToTheChiz
quote:Not necessarily. It depends on currency valuation during the interval to maturity.
If a bank pays you to take a loan, and the interest rate is negative, then they are losing money
Posted on 8/19/19 at 8:26 am to HailToTheChiz
quote:
If a bank pays you to take a loan, and the interest rate is negative, then they are losing money
This doesn't make sense
They still have fees. Probably raise those.
Posted on 8/19/19 at 11:03 am to OleWarSkuleAlum
quote:
Meanwhile the fed refuses to reduce rates more than 25 BPS.
The Fed doesn't even follow it's own rules.
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