We estimate a structural model of household liquidity management in the presence of long-term mortgages. Households … leverage, precautionary saving in liquid assets and illiquid home equity, debt repayment, mortgage refinancing, and default … accounts for the run-up in household debt and consumption boom prior to the financial crisis, their subsequent collapse, and …

Households that fail to refinance their mortgage when interest rates decline can lose out on substantial savings. Based … on a large random sample of outstanding U.S. mortgages in December of 2010, we estimate that approximately 20% of … households for whom refinancing would be optimal and who appeared unconstrained to do so, had not taken advantage of the lower …

.S. household leverage from 2002 to 2006 and the increase in defaults from 2006 to 2008. Employing land topology-based housing …

mortgage refinancing activity and spur consumption by focusing on the Home Affordable Refinance Program (HARP). The policy … in refinancing activity by HARP. More than three million eligible borrowers with primarily fixed-rate mortgages … interventions, pass-through of monetary policy through household balance-sheets and design of the mortgage market …

We build an empirical model to decompose delays in mortgage refinancing into time-dependent inaction (a low probability … mortgage refinancing without cash-out is unconstrained. Middle-aged and wealthy households exhibit state-dependent inaction … of responding to a refinancing incentive in a given quarter) and state- dependent inaction (a psychological addition to …

The goal of this chapter is to study how, and by how much, household income, wealth, and preference heterogeneity …, using data from the Panel Study of Income Dynamics, we document the patterns of household income, consumption and wealth …. Motivated by this evidence, we study several variants of a standard heterogeneous household model with aggregate shocks and an …

The U.S. mortgage market has experienced phenomenal change over the last 35 years. This paper develops and implements a … technique for assessing the impact of changes in the mortgage market on households. Our framework, which is based on the … relationship between the value of a household's home purchase and its future income. We find that over the past several decades …

household net worth coming from elevated household debt and the collapse in house prices play an underappreciated role. Using … highlight the increasing body of macroeconomic evidence on the link between household debt and business cycles. Our main … conclusion is that housing and household debt should play a larger role in models exploring the importance of household …

This paper reviews the literature on international comparative household finance. The paper presents summary statistics … on household balance sheets for 13 developed countries, and uses these statistics to discuss common features and … mortgages …