The banks are simply trying to minimize their losses. If deferring a scheduled rate increase means that they don’t have to foreclose in a down real estate market and they can continue to get the borrower to service the loan then the bank comes out ahead. That’s not rocket science either...
Correct. But a rate freeze (federally mandated) is a much different thing than banks deciding to take a smaller profit or break even (or minimize loss). That is a business decision, not a government function.