
Prof. Alessandro Gavazza of London School of Economics on mortgages, cars and market friction
Scientific Sense ®
00:00
Fixed Rate Mortgages in the US?
Here in the United Kingdom, everybody talks about fixed rate mortgages. There are variable rate mortgages that are just every month or every six months. But here when people talk about fixed rates they really mean a two year fixed rate mortgage. For the US audience, for example, this is obviously a short period in which interest rates are fixed. They were actually reasonably popular before the Great Financial Crisis of 2008 but have lost a bit of appeal since then.
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