Economics of the Mortgage Market

The analysis of the mortgage market is a specialised field but examines a financial market with extremely wide-ranging implications; it affects the stability of the whole economy. The key thing about this analysis is the increasing importance of the secondary mortgage market which in the US is now several times larger than the market for government debt. The UK secondary mortgage market is also growing and the book will provide a timely resource to those active and interested in this important financial market. The 1990s saw an enormous growth of mortgage market analysis as an academic subject and there is a vast literature scattered among the key real estate journals. There is now a great need to not only bring this very complex subject area together, but also to abstract the main issues and to render them intelligible. The book will provide an organised research resource and also inform and motivate further research into the microeconomics of mortgage markets.

The analysis of the mortgage market is a specialised field butexamines a financial market with extremely wide-rangingimplications; it affects the stability of the whole economy.The key thing about this analysis is the increasing importanceof the secondary mortgage market - which in the US is nowseveral times larger than the market for government debt. The UKsecondary mortgage market is also growing and the book will providea timely resource to those active and interested in this importantfinancial market.The 1990s saw an enormous growth of mortgage market analysis asan academic subject and there is a vast literature scattered amongthe key real estate journals. There is now a great need to not onlybring this very complex subject area together, but also to abstractthe main issues and to render them intelligible. The book willprovide an organised research resource and also inform and motivatefurther research into the microeconomics of mortgage markets.

Preface.Acknowledgements.1 An Introduction to Mortgage Market Economics.2 The Demand for Mortgage Finance: Theory.3 The Demand for Mortgage Finance: Empirical Evidence.4 The 'Tilt', Mortgage Designs and the Amortisationof Debt.5 Rationing, Mortgage Market Adjustment and SeparatingEquilibrium.6 Credit Rationing, Mortgage Market Adjustment and SeparatingEquilibrium: Empirical Evidence.7 The Households Choice of Mortgage Design: Theory.8 The Households Choice of Mortgage design: EmpiricalEvidence.9 The Risky Mortgage Contract and Embedded Options: MortgageValuation and Household Behaviour.10 Prepayment and Default Behavior: Empirical Evidence.11 Conclusion: The 'Field' of Mortgage MarketEconomics.Bibliography.Index.