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Monetary Policy and Household Mobility: The Effects of Mortgage Interest Rats

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  • Quigley, John M.

Abstract

This paper tests the "lock−in" effect of mortgage contract terms and establishes the link between changes in market interest rates and homeowner mobility. The analysis is based on the Panel Study of Income Dynamics during 1990−1993, when mortgage interest rates declined by almost 30 percent.

Suggested Citation

  • Quigley, John M., 2005. "Monetary Policy and Household Mobility: The Effects of Mortgage Interest Rats," Berkeley Program on Housing and Urban Policy, Working Paper Series qt94w8f0jq, Berkeley Program on Housing and Urban Policy.
    • Handle: RePEc:cdl:bphupl:qt94w8f0jq
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    References listed on IDEAS

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    1. Dynarski, Mark, 1985. "Housing demand and disequilibrium," Journal of Urban Economics, Elsevier, vol. 17(1), pages 42-57, January.
    2. Weinberg, Daniel H. & Friedman, Joseph & Mayo, Stephen K., 1981. "Intraurban residential mobility: The role of transactions costs, market imperfections, and household disequilibrium," Journal of Urban Economics, Elsevier, vol. 9(3), pages 332-348, May.
    3. Quigley, John M, 1987. "Interest Rate Variations, Mortgage Prepayments and Household Mobility," The Review of Economics and Statistics, MIT Press, vol. 69(4), pages 636-643, November.
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