How Mortgage Interest Rates and Salaries Affect the Mortgage Debt

Svetlana Todorova () and Dimitria Karadimova ()
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Svetlana Todorova: University of Economics - Varna
Dimitria Karadimova: University of Economics - Varna

Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, 2020, vol. 9, issue 1, 63-70

Abstract: This paper explores the relationship between household mortgage debt and mortgage interest rate and salary in Bulgaria. The monthly data in this research paper is from January 2007 to June 2020, from existing official sources - NSI (National Statistical Institute) and BNB (Bulgarian National Bank). The chosen initial period is related to the beginning of the Monetary Board and the macroeconomic stability of the country after the Board. The research methodology includes correlation, regression analysis and related tests of statistical hypotheses. Based on the results, we derive the estimated regression equation that can be used to explain the impact of changes in independent variables on the dependent variable and to make predictions. We found that mortgage debt is positively associated with salary and negatively associated with mortgage interest rate.

Keywords: Mortgage Debt; Mortgage Interest Rate; Salary; Multiple Regression (search for similar items in EconPapers)
JEL-codes: E19 G21 R21 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:vra:journl:v:9:y:2020:i:1:p:63-70

DOI: 10.36997/IJUSV-ESS/2020.9.1.63

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