of mortgage loans without damage compensation to the creditor in the European Union. We show in a formal model that such … evidence that supports this argument, among others in a panel study on monthly mortgage interest rates of 23 EU Member States …

We study the causal effect of mortgage rate changes on consumer spending, debt repayment, and defaults during an … interest rates of short-term fixed-rate mortgages (the dominant product in Canada's mortgage market) have to be reset according … variation in the timing of mortgage rate resets. We find asymmetric responses of consumer durable spending, deleveraging, and …

than less. Suppose that a household plans to finance a given housing purchase through a preferred future mortgage path. If … that mortgage path violates a new amortization requirement, the household can still achieve its preferred mortgage path … the mortgage rate, because then the excess borrowing is costless. But even if the savings interest rate is less than the …

We introduce a reduced-form modeling framework for mortgage-backed securities in which we solve for the implied … actual prepayments, providing direct evidence of significant prepayment risk premia in mortgage-backed security prices. We … risk. We also find evidence that mortgage-backed security prices were significantly affected by Fannie Mae credit risk and …

that mortgage contracts with low initial payments substantially increase household borrowing and lifetime interest costs. …