Monetary Policy and Household Mobility: The Effects of Mortgage Interest Rats.
- Author(s): Quigley, John M.
- et al.
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.