Fixed vs. adjustable-rate mortgages and attention

Marcos González-Fernández, Francisco José Sáez Trujillo and Carmen González-Velasco

Finance Research Letters, 2024, vol. 62, issue PA

Abstract: The aim of this paper is to analyze the attention of households to fixed-rate and adjustable-rate mortgage loans depending on the evolution of interest rates. We hypothesize that a high level of general interest rates would lead to a higher attention to adjustable-rate mortgages. Using Google Trends tool to capture this attention, we demonstrate using VAR models that upsurges in interest rates precede a larger attention on Google searches related to adjustable-rate mortgages, but not for fixed-rate mortgages.

Keywords: Mortgage market; Attention; Fixed-rate; Adjustable-rate; Google data (search for similar items in EconPapers)
JEL-codes: G10 G21 G40 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324001806

DOI: 10.1016/j.frl.2024.105150

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