Collateral Damage: Refinancing Constraints and Regional Recessions
Journal of Money, Credit and Banking, Vol. 29, No. 4, Part 1, November 1997
Posted: 18 Jul 1997
Abstract
In the current structure of the U.S. residential mortgage market, a decrease in property values may make it very difficult for homeowners to refinance their mortgages to take advantage of declining interest rates. In this paper, we show that this form of collateral constraint has greatly reduced refinancing in states with depressed property markets. We outline the interaction between regional recessions and refinancing constraints.
JEL Classification: E52, E58
Suggested Citation: Suggested Citation
Caplin, Andrew and Freeman, Charles and Tracy, Joseph, Collateral Damage: Refinancing Constraints and Regional Recessions. Journal of Money, Credit and Banking, Vol. 29, No. 4, Part 1, November 1997, Available at SSRN: https://ssrn.com/abstract=37809
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.