Final answer:
To determine when it's better for either the borrower or the bank in terms of mortgage loans, one must compare mortgage interest rates to the inflation rates provided in the tables. Borrowers benefit when interest rates are below inflation, while banks benefit when interest rates exceed inflation. The secondary loan market also plays a role in these dynamics.
Step-by-step explanation:
When considering the question of whether it would be better to be a person borrowing money from a bank or the bank lending money to purchase a home, it is essential to compare mortgage interest rates with the rate of inflation for the given years. If the mortgage interest rate is lower than the rate of inflation, it would be more favorable for the borrower, as the real cost of the loan decreases over time. Conversely, if the mortgage interest rate is higher than the rate of inflation, it would be advantageous for the bank, as the real value of the payments it receives increases. To accurately determine this, one would need to look at the specific rates provided in the tables mentioned in the question (Table 6.11 or Table 19.11, for example). Furthermore, the concept of the secondary loan market is also relevant, as banks may sell mortgage loans to other financial institutions, which impacts the bank's immediate return on the mortgage asset.