But if we are at another cyclical stage, it is, of course, important for fiscal policy to compensate for this. For a number of years, variable-rate loans have meant lower expenses for homeowners. The more widespread use of these loans make households more vulnerable to rising interest rates.
If the yield on the bonds used to finance adjustable-rate loans rises, homeowners must foot the bill – even if the increase is extraordinarily high, perhaps in connection with a currency crisis. It is very important that homeowners are aware of this risk and have taken it into account in their budgets.