Support for a Broad-Based and Inclusive Recovery Recent research indicates that the Coronavirus Aid, Relief, and Economic Security (CARES) Act played a significant role in supporting aggregate demand in the spring and summer. Enhanced unemployment benefits offset the lost income of many lower-wage and services workers, in some cases at greater-than-wage-replacement rates.
In turn, the mortgage credit institutions do not build up the same margin of security as for loans with amortisation. We also know that rising interest rates may have major consequences for homeowners with variable-rate loans. Some homeowners will have to tighten their belts even with a moderate rise in interest rates. The general interest rate level has been decreasing for years.