Peter Schiff Warns of Hidden Risks Behind the Mortgage Rate Boom

Peter Schiff argues that years of ultra-low interest rates created hidden risks in the US mortgage market.
He highlights how homeowners refinanced mortgages from around 7% to 3%, lowering monthly payments but potentially squeezing lenders' returns.
Schiff describes the process as a transfer of financial benefits rather than new wealth creation. He also argues that banks' mortgage profitability was supported by near-zero Federal Reserve rates, which masked underlying vulnerabilities.