Disentangling the Effects of Household Financial Constraints and Risk Profile on Mortgage Rates
Santiago Carbó-Valverde (),
Sergio Mayordomo () and
Francisco Rodríguez-Fernández ()
Additional contact information
Santiago Carbó-Valverde: Bangor Business School, CUNEF and Funcas
Francisco Rodríguez-Fernández: University of Granada and Funcas
Authors registered in the RePEc Author Service: Santiago Carbo Valverde ()
The Journal of Real Estate Finance and Economics, 2018, vol. 56, issue 1, No 3, 76-100
Abstract In this paper we disentangle the impact of household financial constraints on mortgage rate from a number of dimensions of credit risk. This analysis relies on a dataset that contains information on the economic and financial decisions of Spanish households in four different years: 2002, 2005, 2008, and 2011. Our results suggest that banks’ profitable customers are able to bargain for lower mortgage rates. However, contrary to other studies, the risk profile does not have a significant effect on mortgage rates. Credit institutions tend to charge higher rates during the crisis to all customers, irrespective of their risk profiles.
Keywords: Households; Mortgages; Financial constraints; Credit risk (search for similar items in EconPapers)
JEL-codes: G21 R21 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11146-016-9595-7 Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:jrefec:v:56:y:2018:i:1:d:10.1007_s11146-016-9595-7
Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11146/PS2
Access Statistics for this article
The Journal of Real Estate Finance and Economics is currently edited by Steven R. Grenadier, James B. Kau and C.F. Sirmans
More articles in The Journal of Real Estate Finance and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().