The US mortgage market is really it’s own beast though, it’s very difficult for a lay person to figure out what the fair price of a mortgage should be, since it’s a path dependant integral (trading firms will spend millions on fancy products that do a weird Monte Carlo integral to get a supposedly fair price, but tbh I’m somewhat sussed out by them.)
It’s also worth noting that in the USA, people can pay upfront cash to decrease their interest rate for the life of the mortgage, although obviously that wouldn’t really take the brunt off of the genuinely higher base interest rates.
And, for what it’s worth, the rates in neighboring Austria are very similar.
And I am quite sure that mortgage rates aren’t low due to subsidies. The market is very competitive and banks are willing to offer you discounts just to convince you to refinance.
Though, there is a lots of mobility in the market. Government caps the fine for premature payment to 1% of the unpaid amount.
Im not too familiar with the Serbian market, but it seems like the government intervenes to keep mortgage rates down? (https://www.nbs.rs/en/scripts/showcontent/index.html?id=19204) (Not sure if this is still ongoing though).
The US mortgage market is really it’s own beast though, it’s very difficult for a lay person to figure out what the fair price of a mortgage should be, since it’s a path dependant integral (trading firms will spend millions on fancy products that do a weird Monte Carlo integral to get a supposedly fair price, but tbh I’m somewhat sussed out by them.)
It’s also worth noting that in the USA, people can pay upfront cash to decrease their interest rate for the life of the mortgage, although obviously that wouldn’t really take the brunt off of the genuinely higher base interest rates.
I mentioned Slovakia, not Serbia.
And, for what it’s worth, the rates in neighboring Austria are very similar.
And I am quite sure that mortgage rates aren’t low due to subsidies. The market is very competitive and banks are willing to offer you discounts just to convince you to refinance.
Though, there is a lots of mobility in the market. Government caps the fine for premature payment to 1% of the unpaid amount.