Artikel
The Exposure of Mortgage Borrowers to Interest Rate Risk and House Price Risk – Evidence from Swiss Loan Application Data
We study the exposure of mortgage borrowers in Switzerland to interest rate and house price risks and examine how the households’ choice of risky mortgages is related to individual interest rate expectations and risk-aversion. Our analysis is based on a unique data set of household mortgage applications from September 2012 until January 2014. Our assessment of risk exposure among mortgage borrowers in Switzerland is highly sensitive to the underlying assumptions on mortgage costs, household income and house value. Our main results suggest that the exposure of mortgage borrowers to interest rate and house price risks is limited in the medium term. We further document that the choice of mortgage contract seems to be more influenced by affordability concerns than risk concerns. In particular, individual interest rate expectations hardly affect mortgage contract choice.
- Sprache
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Englisch
- Erschienen in
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Journal: Swiss Journal of Economics and Statistics ; ISSN: 2235-6282 ; Volume: 151 ; Year: 2015 ; Issue: 2 ; Pages: 3-37 ; Heidelberg: Springer
- Klassifikation
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Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Household Saving; Personal Finance
Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
Housing Supply and Markets
- Thema
-
mortgage default
mortgage choice
household finance
mortgage risk
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Brown, Martin
Guin, Benjamin Suman
- Ereignis
-
Veröffentlichung
- (wer)
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Springer
- (wo)
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Heidelberg
- (wann)
-
2015
- DOI
-
doi:10.1007/BF03399414
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Brown, Martin
- Guin, Benjamin Suman
- Springer
Entstanden
- 2015
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