And now interest rates have soared to a 20-year high, eroding buying power without — in defiance of normal economic logic — doing much to dent prices.
They have been insulated from rising interest rates and, to a degree, from rising consumer prices.
Their monthly housing costs are, for the most part, locked in place.
Because the interest rate is fixed, homeowners get to freeze their monthly loan payments for as much as three decades, even if inflation picks up or interest rates rise.
But because most U.S. mortgages can be paid off early with no penalty, homeowners can simply refinance if rates go down.
Persons:
Buyers