The Mortgage Rate Conundrum

2021 ◽  
Author(s):  
Alejandro Justiniano ◽  
Giorgio Primiceri ◽  
Andrea Tambalotti
Keyword(s):  
Mortgage Rate

Mortgage Rate Insurance in Canada

1986 ◽  
Vol 12 (3) ◽  
pp. 432 ◽  
Author(s):  
Keith P. Sharp
Keyword(s):  
Mortgage Rate

scholarly journals The Effects of Quantitative Easing Announcements on the Mortgage Market: An Event Study Approach

2019 ◽  
Vol 7 (1) ◽  
pp. 9 ◽  
Author(s):  
Gang Wang
Keyword(s):  
Interest Rates ◽  
Event Study ◽  
The United States ◽  
Mortgage Market ◽  
Quantitative Easing ◽  
Study Approach ◽  
Mortgage Rate ◽  
Mortgage Securities ◽  
The Impact ◽  
T Distribution

This paper uses event study analysis to estimate the impact of the United States Federal Reserve Bank’s (Fed) quantitative easing (QE) announcements on the mortgage market during the zero lower bound (ZLB) period. A total of 35 QE announcements are identified and their effects are evaluated. The best-fitting integrated generalized autoregressive conditional heteroskedasticity (IGARCH) model with skewed t distribution is used to measure the QE announcement effects on daily changes of the 30-year mortgage rate, the 30-year Treasury rate and the spread between them. Announcements suggesting the start of a new round of QE reduced the mortgage rate tremendously, while the effects of further news diminished. Announcements of an increase in mortgage-backed security purchases decreased the mortgage rate more than the Treasury rate and reduced the credit risk of holding mortgage securities over Treasury securities. The delayed effects of QE announcements on the mortgage rate were less than short-run effects but persistent. We also find that the previous literature overestimates QE effects on interest rates in general.

scholarly journals House Prices, Mortgage Rate, and Policy: Megadata Analysis in Taipei

2018 ◽  
Vol 10 (4) ◽  
pp. 926 ◽  
Author(s):  
Chien-Ming Yu ◽  
Pei-Fen Chen
Keyword(s):  
House Prices ◽  
Mortgage Rate

scholarly journals The Sensitivity of Housing Demand to Financing Conditions: Evidence from a Survey

2021 ◽  
Vol 13 (1) ◽  
pp. 231-265
Author(s):  
Andreas Fuster ◽  
Basit Zafar
Keyword(s):  
Willingness To Pay ◽  
House Price ◽  
Theoretical Models ◽  
Housing Demand ◽  
Price Determination ◽  
Mortgage Rate ◽  
Mortgage Rates

Measuring the sensitivity of housing demand to mortgage rates and available leverage is challenging because there is generally no exogenous variation in these variables. This paper circumvents this issue by designing a strategic survey in which respondents report their willingness to pay (WTP) for a home under different financing scenarios. Relaxation of down payment constraints or an exogenous increase in nonhousing wealth has large effects on WTP, especially for poorer and more credit-constrained households. However, changing the mortgage rate has only moderate effects on WTP. These findings have implications for theoretical models of house price determination and for policy. (JEL G21, G51, R21, R38)

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