Mortgages are prime examples of long-term nominal loans. As a result, under incomplete asset markets, monetary policy … can affect household decisions through the cost of new mortgage borrowing and the value of payments on outstanding debt …, have larger real effects than transitory shocks. The transmission is stronger under adjustable- than fixed-rate mortgages …

commuting, and about how much to spend on a mortgage. By matching the results to data (at the ZIP-code level) about relative … commuting, and they find that people who live in the high-decline areas believe it is appropriate to spend more on a mortgage. …

We propose a model of a risky mortgage-lending market in which we take explicit account of heterogeneity in household …

There are large cross-sectional differences in how often US borrowers refinance mortgages. In this paper, we develop an … equilibrium mortgage pricing model with heterogeneous borrowers and use it to show that equilibrium forces imply important cross …-subsidies from borrowers who rarely refinance to those who refinance often. Mortgage reforms can potentially reduce these regressive …

The U.S. mortgage market has experienced phenomenal change over the last 35 years. Most observers believe that the … Freddie Mac, have played in the development of a secondary market in mortgages. This paper develops and implements a technique … for assessing the impact of changes in the mortgage market on individuals and households. Our analysis is based on an …

and 2007 nonprime vintages becomes more understandable. -- Housing ; mortgage default ; subprime mortgages …We study early default, defined as serious delinquency or foreclosure in the first year, among nonprime mortgages from …