Decoded No. 2: The Mortgage Reset Clock (full note, PDF)
The full 25-page analysis note: mortgage rates jumped after the 2026 oil shock, but households pay only when their rate resets. Instant PDF download.
About the author
Decoded, analysis note No. 2. Driss EFFINA, PhD. October 2026. PDF, 25 pages, 14 charts and diagrams, 7 tables.
The oil shock that followed the outbreak of war involving Iran at the end of February 2026 has pushed new mortgage rates sharply higher. The US 30-year fixed rate averaged 7.36 percent in October, against 6.05 percent in February. The quoted UK 2-year fixed rate rose from 3.97 to 5.13 percent while Bank Rate stayed at 3.75 percent, and a Canadian 5-year fixed rate proxy rose from 4.32 to 5.08 percent with the Bank of Canada on hold.
Inside the full note:
- The shock in mortgage markets
- Five mortgage contracts
- Method: a cohort model of the mortgage stock
- The reset clock
- What households will pay
- Tightening without hiking
- The United States: lock-in instead of payment shock
- House prices and rate sensitivity
- Scenarios to 2028 and beyond
- A dashboard of leading indicators for household mortgage stress
- Implications for policy, lenders, households and investors
- What to watch
Read the free preview: The Mortgage Reset Clock.

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