全球智库信息集成服务系统(G2TT): What Calls to ARMs? International Evidence on Interest Rates and the Choice of Adjustable-Rate Mortgages

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w20408
来源ID	Working Paper 20408
	What Calls to ARMs? International Evidence on Interest Rates and the Choice of Adjustable-Rate Mortgages
	Cristian Badarinza; John Y. Campbell; Tarun Ramadorai
发表日期	2014-08-21
出版年	2014
语种	英语
摘要	The relative popularity of adjustable-rate mortgages (ARMs) and fixed-rate mort- gages (FRMs) varies considerably both across countries and over time. We ask how movements in current and expected future interest rates affect the share of ARMs in total mortgage issuance. Using a nine-country panel and instrumental variables methods, we present evidence that near-term (one-year) rational expectations of future movements in ARM rates do affect mortgage choice, particularly in more recent data since 2001. However longer-term (three-year) rational forecasts of ARM rates have a relatively weak effect, and the current spread between FRM and ARM rates also matters, suggesting that households are concerned with current interest costs as well as with lifetime cost minimization. These conclusions are robust to alternative (adaptive and survey-based) models of household expectations.
主题	Microeconomics ; Households and Firms ; Macroeconomics ; Money and Interest Rates ; Financial Economics ; Financial Institutions
URL	https://www.nber.org/papers/w20408
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/578082
推荐引用方式 GB/T 7714	Cristian Badarinza,John Y. Campbell,Tarun Ramadorai. What Calls to ARMs? International Evidence on Interest Rates and the Choice of Adjustable-Rate Mortgages. 2014.