An overarching theme throughout this cycle has been the notable disparity between “the haves” and “the have-nots.”.

We discussed this theme in the context of businesses and macro during the early spring (see here). This divergence dynamic also extends to consumers: Individuals who possess assets, particularly RE, serving as collateral, might find themselves benefiting from being locked in low-interest rates and prices still at elevated levels. No inforced foreclosures here.

We call this the golden handcuff syndrome.

Chart 1: Delinquency rates, Mortgages US