Adjustable-Rate and Fixed-Rate Mortgage Choice: A Logit Analysis
- 1 January 1989
- journal article
- research article
- Published by Taylor & Francis in Journal of Real Estate Research
- Vol. 4 (2) , 81-91
- https://doi.org/10.1080/10835547.1989.12090582
Abstract
Logit analysis is used to determine if financial variables are significant in determining borrower selection between fixed-rate and adjustable-rate mortgages. The results support the hypothesis that mortgage choice is a function of the consumer price index, Treasury bill rates, and differences in the initial interest rates offered by the competing mortgages.Keywords
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