Denmark offers homeowners 20-year loans at a fixed interest rate of zero
Can you say &#x27;housing inflation&#x27;?<p>All this does is introduce more monetary demand for housing, increases prices, and stretches out credit putting further distance between those with no homes, and those with the biggest.<p>Housing may be one of the largest drivers in personal wealth in our era - the more you can afford for a down payment and payments, the greater your financial leverage over those with less leverage.<p>And of course, renters are left in the lurch with higher prices.<p>A smarter plan might be to limit the term lengths of mortgages to 15 years, and to frankly <i>increase</i> (and stabilize) interest rates on homes. If interventions are what you want to do ...<p>FYI money will come out of regular consumption and get plowed into real-estate, which is mostly a non productive asset.