There is no shortage of speculation on what will happen with interest rates. Some commentators predict sharp increases and others predict stable rates. Maybe there are some who predict that interest rates will drop a little. Many borrowers listen to these predictions trying to decide whether they have to do anything about their growing debts. This way of thinking is dangerous.
Just because a convincing forecaster says that interest rates will not rise, we should not ignore dangerous debt levels. Debtors should look at the range of possibilities rather than listen to experts make precise predictions. The truth is that nobody knows for sure what will happen with interest rates.
The best rate I was able to find for a 1-year closed mortgage is 2.64%. In three years, this rate could easily be anywhere in the range 2% to 8% or higher. Borrowers should ask themselves what will happen to them if rates rise steadily to 8% in the next 3 years. Will finances be a little tight or will they go bankrupt?
It is the range of possibilities that matters, not the most convincing prediction.