It is easy to assume mortgage rates cannot rise unless the central bank raises its policy rate. Fixed mortgage rates, however, respond more directly to bond yields, which can move as markets reassess inflation, energy prices, government borrowing and the future policy path.
For households, the useful question is not how to predict the next move. It is how fixed and variable rates behave differently, and whether the financing structure still fits the household’s cash flow and capacity for risk.
Originally published on Guaranti’s YouTube channel.