We examine the effects of monetary policy on household self-assessed financial stress and durable consumption using … savers. We find symmetric effects on durable consumption, mainly driven by mortgagors with high debt burden or limited access …

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 …

This paper quantifies the extent of heterogeneity in consumption responses to changes in real interest rates and house … portfolios, observed in the Household Finance and Consumption Survey (HFCS) for these countries. We then show that the … heterogeneity in household finances implies that responses of consumption to changes in the real interest rate and in house prices …

This paper quantifies the extent of heterogeneity in consumption responses to changes in real interest rates and house …, observed in the Household Finance and Consumption Survey (HFCS) for these countries. We then show that the heterogeneity in … household finances implies that responses of consumption to changes in the real interest rate and in house prices differ …

This paper quantifies the extent of heterogeneity in consumption responses to changes in real interest rates and house …, observed in the Household Finance and Consumption Survey (HFCS) for these countries. We then show that the heterogeneity in … household finances implies that responses of consumption to changes in the real interest rate and in house prices differ …

We study the mortgage cash flow channel of monetary policy transmission under fixed-rate mortgage (FRM) versus … adjustable-rate mortgage (ARM) regimes by comparing the United States with primarily long-term FRMs and Spain with primarily ARMs … that automatically reset annually. We find a robust transmission of mortgage rate changes to spending in both countries but …

-in-differences analysis shows that compared with homeowners without mortgage obligations, mortgagors increased their monthly credit card … spending by 7.2% after the 230bps mortgage rate reduction announced in September 2008. We find a significant spending response … after the mortgage rate reset. Subsequent to an interest-rate-increase episode, mortgagors symmetrically reduced their …

significantly (especially on durable goods) but outright home-owners do not. While the dollar change in mortgage payments is nearly …

the aggregate response of consumption to interest rates is driven by households with a mortgage. Outright home owners do …How do changes in monetary policy affect consumption? Using household data for the US and the UK, we show that most of … households as interest rate cuts directly affect firm investment and household consumption, boosting aggregate demand. A key …