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House Prices, Debt Burdens, and the Heterogeneous Effects of Mortgage Rate Shocks

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  • William Larson
  • Andrew Martinez

Abstract

The effects of mortgage rate changes on house prices depend on mortgage underwriting rules and the share of borrowers with extreme debt burdens (Working Paper no. 25-02).

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  • William Larson & Andrew Martinez, 2025. "House Prices, Debt Burdens, and the Heterogeneous Effects of Mortgage Rate Shocks," Working Papers 25-02, Office of Financial Research, US Department of the Treasury.
    • Handle: RePEc:ofr:wpaper:25-02
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    Cited by:

    1. Aditya Aladangady & Jacob Krimmel & Tess C. Scharlemann, 2024. "Locked In: Mobility, Market Tightness, and House Prices," Finance and Economics Discussion Series 2024-088r1, Board of Governors of the Federal Reserve System (U.S.), revised 15 May 2025.

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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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