The Effect of Mortgage Origination Fees on the Housing Price Dynamics

Ashot Tsharakyan

CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague

Abstract: This paper explores the link between mortgage origination fees and housing prices. It is argued that sharp decline in mortgage origination fees in US since the late 1980s was caused by mortgage market deregulation and mortgage innovation. Based on this reasoning the sources of exogenous variation in mortgage fees are identified, and the effect of mortgage fees on housing prices is quantified. The results indicate that decline in mortgage fees had robust statistically significant positive effect on housing prices. The lagged effect of mortgage fees on housing prices is also present.

Keywords: Mortgage origination fees; housing price; branching restrictions; mortgage market deregulation. (search for similar items in EconPapers)
JEL-codes: C33 R21 R31 (search for similar items in EconPapers)
Date: 2008-08
New Economics Papers: this item is included in nep-bec and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:cer:papers:wp357

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