This paper investigates the impact of lower mortgage rates on household balance sheets and other economic outcomes … loans, which constitute the vast majority of U.S. mortgage borrowers. Relying on variation in the timing of resets of … adjustable rate mortgages, we find that a sizable decline in mortgage payments ($150 per month on average) induces a significant …

This paper investigates the impact of lower mortgage rates on household balance sheets and other economic outcomes … loans, which constitute the vast majority of U.S. mortgage borrowers. Using a difference-in-differences framework that … sizable decline in mortgage payments ($150 per month on average) induces a significant drop in mortgage defaults, an increase …

property prices can have a decisive effect on consumption. The mortgage markets represent an important link between monetary … example, where the standard mortgage has a variable interest rate. Moreover, the example of the USA, where household decisions … mortgage market, the conclusion to be drawn is that measures which would limit the variety of products available should be …