Tag: #Mortgages

A Farewell to Equality: Monetary Policy Implications of Heterogeneous Mortgage Refinancing  Martsella Davitaya   We show that credit score heterogeneity dampens monetary policy transmission through fixed-rate mortgages (FRMs). Using Fannie Mae Single-Family Loan-Level historical data, we show that a one-percentage-point reduction in the mortgage rate increases the refinancing probability for borrowers with excellent credit scores…