Fixed vs. variable: How not to lose this mortgage guessing game.

The blog discusses the ongoing battle between fixed and variable mortgages, with variable rates priced an average of 184 basis points below 5-year fixed rates. However, May inflation data is expected to give over-leveraged borrowers second thoughts about variable rates. The post also discusses the bond market, which is often a more reliable indicator of future rates than experts. The author suggests that if rates are priced efficiently, it is better to focus on known factors such as the applicant’s financial situation and tolerance for payment risk, rather than trying to guess which mortgage will be least expensive. If people want to avoid the guessing game, they should consider hybrid (part fixed/part variable) mortgages.