Investing
Your Savings Account Rate Is Now Higher Than Millions of Mortgages
It’s a strange quirk of the current housing market that some Americans are earning a higher interest rate on savings accounts than they’re paying on their mortgage.
Single family homes in a housing development in Aurora, Colorado.
Photographer: Chet Strange/BloombergThis article is for subscribers only.
Some lucky Americans are earning a higher interest rate on their high-yield savings accounts than they’re paying on their mortgage.
It’s an odd disconnect that’s resulted from the Federal Reserve’s aggressive tightening this year. The central bank has rapidly hiked interest rates to combat inflation, which has sent mortgage costs surging and slowed the housing market, but also boosted the yields banks are willing to pay savers.