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Replication data for: The Interest Rate Elasticity of Mortgage Demand: Evidence from Bunching at the Conforming Loan Limit

Version
V0
Resource Type
Dataset
Creator
  • DeFusco, Anthony A.
  • Paciorek, Andrew
Publication Date
2017-02-01
Description
  • Abstract

    This paper provides novel estimates of the interest rate elasticity of mortgage demand by measuring the degree of bunching in response to a discrete jump in interest rates at the conforming loan limit--the maximum loan size eligible for purchase by Fannie Mae and Freddie Mac. The estimates indicate that a 1 percentage point increase in the rate on a 30-year fixed-rate mortgage reduces first mortgage demand by between 2 and 3 percent. One-third of this response is driven by borrowers who take out second mortgages, which implies that total mortgage debt only declines by 1.5 to 2 percent.
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/pol.20140108 (Text)
Publications
  • DeFusco, Anthony A., and Andrew Paciorek. “The Interest Rate Elasticity of Mortgage Demand: Evidence from Bunching at the Conforming Loan Limit.” American Economic Journal: Economic Policy 9, no. 1 (February 2017): 210–40. https://doi.org/10.1257/pol.20140108.
    • ID: 10.1257/pol.20140108 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07

DeFusco, Anthony A.; Paciorek, Andrew (2017): Replication data for: The Interest Rate Elasticity of Mortgage Demand: Evidence from Bunching at the Conforming Loan Limit. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E116504