Replication data for: The Interest Rate Elasticity of Mortgage Demand: Evidence from Bunching at the Conforming Loan Limit
- DeFusco, Anthony A.
- Paciorek, Andrew
AbstractThis 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.
Is supplement to
DOI: 10.1257/pol.20140108 (Text)
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