On the transmission of monetary policy to the housing market

Winfried Koeniger, Benedikt Lennartz and Marc-Antoine Ramelet

European Economic Review, 2022, vol. 145, issue C

Abstract: We provide empirical evidence on the heterogeneous transmission of monetary policy to the housing market across and within countries. We use household-level data from Germany, Italy and Switzerland together with the respective monetary policy shocks identified from high-frequency data. We find that the pass-through of monetary policy shocks to rates of newly originated (fixed-rate) mortgages is twice as strong in Switzerland as in Germany and Italy. After an accommodative monetary policy shock, this is associated in the housing market with a larger immediate, and persistent increase of transitions from renting to owning; a stronger decrease in rents; and an increase of the price–rent ratio. Within Italy, we find a stronger pass-through to mortgage rates, housing tenure transitions and the price–rent ratio in the northern regions that have been characterized in the literature as more financially developed than the southern regions.

Keywords: Monetary policy transmission; Housing market; Home ownership; Rents; House prices (search for similar items in EconPapers)
JEL-codes: E21 E52 R21 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: On the transmission of monetary policy to the housing market (2021)
Working Paper: Home Ownership and Monetary Policy Transmission (2018)
Working Paper: Home Ownership and Monetary Policy Transmission (2018)
Working Paper: Home Ownership and Monetary Policy Transmission (2018)
Working Paper: Home ownership and monetary policy transmission (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:145:y:2022:i:c:s0014292122000496

DOI: 10.1016/j.euroecorev.2022.104107

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