Economics Of The Mortgage Market: Perspectives On Household Decision Making (real Estate Issues)

The analysis of the mortgage market is a specialised field but examines a financial market with extremely wide-ranging implications; it affects the stability of the whole economy. The key thing about this analysis is the increasing importance of the secondary mortgage market – which in the US is now several times larger than the market for government debt. The UK secondary mortgage market is also growing and the book will provide a timely resource to those active and interested in this important financial market. The 1990s saw an enormous growth of mortgage market analysis as an academic subject and there is a vast literature scattered among the key real estate journals. There is now a great need to not only bring this very complex subject area together, but also to abstract the main issues and to render them intelligible. The book will provide an organised research resource and also inform and motivate further research into the microeconomics of mortgage markets. An introduction to mortgage market economics -- The demand for mortgage finance : theory -- The demand for mortgage finance : empirical evidence -- The "tilt", mortgage designs, and the amortisation of debt -- Rationing, mortgage market adjustment, and separating equilibrium -- Credit rationing, mortgage market adjustment, and separating equilibrium : empirical evidence -- The households choice of mortgage design : theory -- The household's choice of mortgage design : theory -- The risky mortgage contract and embedded options : mortgage valuation and household behaviour -- Prepayment and default behaviour : empirical evidence -- Conclusion : the "field" of mortgage market economics iii-xiii......Page 1 1-27......Page 12 28-49......Page 39 50-68......Page 61 69-91......Page 80 92-112......Page 103 113-131......Page 124 132-156......Page 143 157-180......Page 168 181-200......Page 192 201-223......Page 212 224-234......Page 235 235-252......Page 246 253-258......Page 264 "Economics of the Mortgage Market : perspectives on household decision making provides an organised research resource for financial analysts in real estate, as well as researchers in real estate finance, real estate economics, housing economics and urban economics."--Jacket For those countries with large and extensive mortgage markets, such as the United States (US) and the United Kingdom (UK), mortgage finance can be the single most important source of personal borrowing, dominating the balance sheets of many households.