Publications

In this paper we disentangle the impact of household financial constraints on mortgage rate from a number of dimensions of credit risk. This analysis relies on a dataset that contains information on the economic and financial decisions of Spanish households in four different years: 2002, 2005, 2008, and 2011. Our results suggest that banks’ profitable customers are able to bargain for lower mortgage rates. However, contrary to other studies, the risk profile does not have a significant effect on mortgage rates. Credit institutions tend to charge higher rates during the crisis to all customers, irrespective of their risk profiles.

Carbó, S., S. Mayordomo and F. Rodríguez (2018): “Disentangling the effects of household financial constraints and risk profile on mortgage rates”, The Journal of Real Estate Finance and Economics, 56(1), January, pp. 76-100.