Mortgage timing
Our rough guess is there are 12,750 words in this book.
At a pace averaging 250 words per minute, this book will take 0 hours and 51 minutes to read. With a half hour per day, this will take 2 days to read.
How long will it take you?
This book will take an estimated to read at a reading speed averaging words per minute. With 30 minutes per day, this will take to read.
Enter your reading speedYou can take one of our WPM reading speed tests to find your reading speed.
Create a free account to track your reading progress, build your reading list, and set reading goals.
Author
Contributions
- Hemert, Otto van, 1977- - Contributor
- Nieuwerburgh, Stijn van. - Contributor
- National Bureau of Economic Research. - Contributor
Publication
2007 - National Bureau of Economic Research, Cambridge, Mass, Massachusetts
Language
English
Word Count
12,750 words, Guess
Page Count
51 pages
Identifiers
- OCLC Control Number173619281
- Open LibraryOL17635416M
Description
The fraction of newly-originated mortgages that are of the adjustable-rate (ARM) versus the fixed-rate (FRM) type exhibits a surprising amount of time variation. A simple utility framework of mortgage choice points to the bond risk premium as theoretical determinant: when the bond risk premium is high, FRM payments are high, making ARMs more attractive. We confirm empirically that the bulk of the time variation in household mortgage choice can be explained by time variation in the bond risk premium. This is true regardless of whether bond risk premia are measured using forecasters' data, a VAR term structure model, or a simple rule-of-thumb based on adaptive expectations. This simple rule-of-thumb moves in lock-step with mortgage choice, thereby lending further credibility to a theory of strategic mortgage timing by households.
Subjects
Topics
Series Statement
- NBER working paper series -- no. 13361.
- Working paper series (National Bureau of Economic Research) -- working paper no. 13361.
Links
Reader Reviews
No reviews yet for this book.
Be the first to share your thoughts!