Oct
21
Japanese Choosing Fixed-Rate Mortgages Shows Kuroda Effect
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People preparing for rate rises even as inflation stagnates
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61 percent of new mortgages are fixed for at least 5 years
Japanese homebuyers are starting to bet that the unprecedented monetary easing of Bank of Japan Governor Haruhiko Kuroda will cause interest rates to rise, even as inflation stagnates well below the official 2 percent inflation target.
Sixty-one percent of new home loans had a fixed interest rate for at least five years in the July-to-August period, according to the Japan Housing Finance Agency. That’s up from 37 percent in October 2012 at the peak of popularity for floating-rate loans, just before Shinzo Abe’s government came to power…
Japanese Choosing Fixed-Rate Mortgages Shows Kuroda Effect
