Eli5: Is inflation good for your mortgage?

1.82K viewsEconomicsOther

If you are paying a fixed rate on a mortgage, is inflation then a good thing?

In: Economics

34 Answers

Anonymous 0 Comments

The point everyone else is missing is that inflation is good for debt holders in a macro sense ie on average and the only reason inflation is “good” for debt holders is because inflation includes the price of labor ie wages. But if your personally wages never go up as part of the inflation then there’s no benefit to you as a debt holder.

You are viewing 1 out of 34 answers, click here to view all answers.