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J.P. Morgan warns global debt risks higher borrowing rates by 2026
The firm links the expected jump in borrowing costs to rising deficits and de-population, two of its six “D’s” shaping the outlook through late 2026.
J.P. Morgan has warned that interest rates on the world’s growing debt stock are set to rise by the end of 2026, citing structural pressures including deficits and de-population. Mortgage News Daily summarizes an analysis by JPMorgan’s Joyce Chang and team, which points to looming upward pressure on borrowing rates globally.
The analysis highlights six “D’s” it says will shape the global economy under the current and surrounding Administrations: Deficits, deregulation, de-carbonization, de-population, de-globalization, and de-dollarization. According to the piece, two factors in particular are expected to push borrowing rates higher around the world.
Mortgage News Daily also discusses developments in mortgage lending, including Rhyze’s expansion of its True HELOC offering, which now allows loan amounts up to $1.5 million for 1st lien transactions.
The article adds that the True HELOC includes a 10-year draw window and an interest-only period, and notes it is underwritten to agency guidelines, positioning the product for borrowers seeking flexibility across purchase, rate/term, and cash-out refinance needs.