Deed Types, House Prices, and Mortgage Interest Rates

2006 ◽  
Author(s):  
David M. Brasington ◽  
Robert F. Sarama
Keyword(s):  
Interest Rates ◽  
House Prices ◽  
Mortgage Interest ◽  
Mortgage Interest Rates

scholarly journals Mortgage volume and macroeconomic factors: Evidence from Turkey

2021 ◽  
Vol 9 (4) ◽  
pp. 1504-1520
Author(s):  
Tuğba Güneş ◽  
Ayşen Apaydın
Keyword(s):  
Interest Rates ◽  
House Prices ◽  
Mortgage Market ◽  
Mortgage Loan ◽  
Response Analysis ◽  
Mortgage Loans ◽  
Macroeconomic Factors ◽  
Mortgage Interest ◽  
Mortgage Interest Rates ◽  
Turkish Lira

This paper investigates the impacts of several macroeconomic variables on Turkey's volume of mortgage loans. Johansen cointegration test, vector error correction model, Granger causality tests, variance decomposition, and impulse-response analysis is employed for the econometric analysis to show short and long-run relationships between the variables using time series monthly data from January 2010 to March 2020. Paper results demonstrate that growth of housing credit size negatively correlates with mortgage interest rates, US Dollar/Turkish Lira exchange rate and level of real estate supply. At the same time, there is a positive correlation with house prices. Causal relationships between mortgage volume and macroeconomic indicators are bidirectional for all variables, except for mortgage interest rates. There is a one-way causality relationship from mortgage rates to mortgage loan volume. Econometric analyses show that the recent steep depreciation in the Turkish Lira hurts the Turkish mortgage market. In conclusion, a stable economic environment is essential to build a robust mortgage market.

Deed Types, House Prices and Mortgage Interest Rates

2008 ◽  
Vol 36 (3) ◽  
pp. 587-610 ◽  
Author(s):  
David M. Brasington ◽  
Robert F. Sarama
Keyword(s):  
Interest Rates ◽  
House Prices ◽  
Mortgage Interest ◽  
Mortgage Interest Rates

scholarly journals HOUSE PRICES, RENTAL COSTS, AND MORTGAGE INTEREST RATES

2021 ◽  
Vol 0 (0) ◽  
pp. 1-13
Author(s):  
Che-Chun Lin ◽  
I-Chun Tsai
Keyword(s):  
Los Angeles ◽  
Interest Rates ◽  
House Prices ◽  
The United States ◽  
Housing Tenure ◽  
Tenure Choice ◽  
User Cost ◽  
Mortgage Interest ◽  
Housing Tenure Choice ◽  
Mortgage Interest Rates

Studies have typically adopted the price-rent ratio to determine whether housing exuberance exists and the periods of imbalance between house prices and rental costs. Using the price-rent ratio to conduct tests without considering the effects of mortgage interest rates on user costs may overestimate episodes of exuberance. This study uses data of the overall housing market and those of 10 major metropolitan statistical areas (MSAs) in the United States from 1979Q1 to 2018Q1 to evaluate whether housing exuberance exists in the markets; the results indicate that all the MSAs experienced episodes of exuberance at different times and the overall housing U.S. market was overheated from 1998Q2 to 2007Q3. By considering mortgage rates and using the user-cost-rent ratio, we further determine that short-term housing exuberance emerged in only two MSAs, Los Angeles and Miami, in 2006Q2, which was followed by immediate corrections. Thus, the research results of this study signify that only use the price-rent ratio to determine whether or not rational housing tenure choice made by traders exists is not sufficient. This study provides evidence showing that the method incorporating mortgage interest rates tends to obtain an equilibrium relationship between the rental and housing markets, indicating interest rates play an important role in housing tenure choice.

Racial Discrepancy in Mortgage Interest Rates

2014 ◽  
Vol 51 (1) ◽  
pp. 101-120 ◽  
Author(s):  
Ping Cheng ◽  
Zhenguo Lin ◽  
Yingchun Liu
Keyword(s):  
Interest Rates ◽  
Mortgage Interest ◽  
Mortgage Interest Rates

scholarly journals How Mortgage Finance Reform Could Affect Housing

2016 ◽  
Vol 106 (5) ◽  
pp. 620-624 ◽  
Author(s):  
John V. Duca ◽  
John Muellbauer ◽  
Anthony Murphy
Keyword(s):  
Interest Rates ◽  
House Prices ◽  
Capital Requirements ◽  
Finance Reform ◽  
Fannie Mae ◽  
Mortgage Finance ◽  
Mortgage Interest Rates ◽  
Size Limits ◽  
Loan Size ◽  
The Impact

Although major changes in mortgage finance have occurred since the subprime bust, several issues remain unresolved, centering on the roles of Fannie Mae, Freddie Mac, and the FHA. We analyze how some reforms might affect house prices in a framework rich enough to simulate the impact of several reforms which change mortgage interest rates and/or loan-to-value (LTV) ratios of first time home buyers, the key drivers of house prices in recent decades. Simulations suggest that ending the GSE interest rate subsidy would have small effects, while changes in capital requirements or maximum FHA loan size limits would have larger effects.

Determinants of Mortgage Interest Rates: Treasuries versus Swaps

2013 ◽  
Vol 50 (1) ◽  
pp. 34-51 ◽  
Author(s):  
C. Stace Sirmans ◽  
Stanley D. Smith ◽  
G. Stacy Sirmans
Keyword(s):  
Interest Rates ◽  
Mortgage Interest ◽  
Mortgage Interest Rates
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