One of the silver linings of the current situation is that it gives conservative investors more options. Moneyweb InterestRates IzakOdendaal
How much will higher interest rates hurt? Higher rates usually impact economic activity with a lag, so it is probably too soon to tell. In developed economies where rates have increased dramatically from ultra-low levels, the answer so far, is not much. We have seen banking turmoil, at least in some parts of the banking sector, but little impact on employment or consumer spending.
The problem is that in the tough economic environment, the demand for long-term loans like mortgages has not been that strong, while banks have also been on the conservative side in approving loans. Mortgage advances grew by 7% in February compared to a year ago, in line with inflation. In real terms, there has been very little growth in mortgage lending over the past decade. Indeed, adjusted for inflation, the total outstanding amount of mortgage debt is 10% below 2008 levels.
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