I intend to provide new insights into the channels that policy interest rates affect spending on housing. I postulate that changes in monetary policy have had a large impact on mortgage refinancing in many developed countries over the last twenty years. This in turn affected the value of securitised mortgage products, which became a significant source of funding for mortgage lending. I plan to use special VAR simulations to show how variables such as mortgage refinancing, securitisation issuance and residential investment respond to a one-standard deviation shock to policy interest rates set by central banks.
Start date:October 2012
Research Topic:Monetary Policy and Housing: Transmission Effects and Policy Implications.
Research Supervisor:Dr Tapas Mishra, Dr Joshy Eashaw
Supervising school:Ysgol Rheolaeth, Prifysgol Abertawe
Primary funding source:ESRC Studentship