If you bought a house to raise your family in the past couple of years, you're toast! You're still on the hook for the absurd loan the bank gave you, interest rates are going up so your payments will too, and your house is worth less.
Given how low fixed mortgage rates have been for years, hopefully not too many people will see their payments go up.
Looking around ARM mortgages were around 3% of all mortgages in 2020-2021 era, so I don’t think it’s fair to generalize that peoples mortgages are going up. But yeah, people will become immobilized if their property has decreased in value, until it recovers, and that’s unfortunate.
Depends on jurisdiction. That’s the case in the USA, but in Canada, for instance, 5-year fixed terms are the standard for mortgages.
Yes! Starting in 2023, many families are going to start going bankrupt and losing their homes in Canada.
Why starting in 2023? Are you expecting much higher rates starting in 2023? There's a rolling set of people who are continually coming up to their 5-year renewal dates.
We call housing expensive because it takes such a huge part of our income (unjustifiably), but as soon as housing prices go down, people start killing themselves.
Housing should be a right. There should be no investment permitted.