Homeowners aren’t giving up their low interest rates

The economy has been stronger and inflation stickier than markets and forecasters expected at the start of 2023, prompting traders to place [Bloomberg]( Follow Us [Get the newsletter]( [That 3% Mortgage Just Keeps Getting Better]( — Conor Sen The economy has been stronger and inflation stickier than markets and forecasters expected at the start of 2023, prompting traders to place bets that the Federal Reserve could ultimately raise rates [as high as 6%]( — a level not seen since 2000. That would have big implications for the housing market and particularly for homeowners who locked in a low mortgage rate early in the pandemic. Photographer: Joe Raedle/Getty Images We’ve already seen homeowners grow reluctant to sell their houses because it would mean giving up their cheap mortgages. Now ever-escalating short-term interest rates are going to make it possible for them to turn their financial position into the kind of carry trade that would be the envy of a bank or hedge fund. We’re seeing an extraordinary dynamic right now — millions of homeowners with low mortgage rates, easy access to low-risk, high-yielding investments and low unemployment. Read the [whole thing](. [Republicans Are Painting Themselves Into a Corner Over Ukraine]( — Jonathan Bernstein [Musk Has Turned Tesla’s ‘Failing’ Into Winning]( — Matthew Winkler [China’s Debt Noose Could Strangle Pakistan]( — Mihir Sharma [Tell Parents the Truth About Learning Loss]( — Bloomberg’s editorial board [Men Dropping Out of the Workforce Could Be Progress]( — Allison Schrager [US Government Has Been Dancing Around UFOs for 75 Years]( — Stephen Mihm [What Walmart Doesn’t Know Should Worry Us All]( — Leticia Miranda [The Michelin Guide Has Lost Some of Its Star Power]( — Tyler Cowen [Happy Hong Kong? Singapore’s Gone Laughing to the Bank]( — Andy Mukherjee More From Bloomberg Opinion Here’s what we’ve been listening to this week. - [Crash Course: Oatly Vs. Big Milk]( with Timothy L. O’Brien (listen on [Apple]( or [Spotify]() - [Bloomberg Opinion With Vonnie Quinn: The Fed Lag and Mortgage Rate Dilemma]( with Garfield Reynolds, Tim Culpan and Alexis Leondis This is the Weekend Edition of Bloomberg Opinion Today, a roundup of the most popular stories Bloomberg Opinion published this week based on web readership. Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. You received this message because you are subscribed to Bloomberg's Bloomberg Opinion Today newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( [Ads Powered By Liveintent]( | [Ad Choices]( Bloomberg L.P. 731 Lexington, New York, NY, 10022