The Impact of Mortgage Rates on Mortgage Refinancing

International Journal of Economics and Financial Issues Pub Date : 2024-03-18 DOI:10.32479/ijefi.15335

C. Ngwakwe

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Abstract

Mortgages loans are vital for the acquisition of housing property and mortgage lending rates play an important role in mortgage market trends, borrowers, and lenders’ decisions. Objective: the aim of this paper is to evaluate the combined effect of current and previous mortgage rates on mortgage refinancing. Prior work: the paper inclines on the ontology of a single reality of the interaction between mortgage rates and mortgage refinancing with attendant epistemology that their interaction is measurable. Method: the paper adopts the positivist paradigm and a quantitative technique. It used data on the U.S. Mortgage Bankers Association (MBA) retrieved from the economic and financial database of Fusion Media. Data were analysed using the OLS technique. Novel Findings show that current-actual and previous mortgage rates have a significant positive effect on mortgage refinancing at p=0.05 and p=0.04 respectively. Significance: the findings have implication for mortgage lending and refinancing decisions for mortgage bankers (lenders), mortgage borrowers and policy makers. It also provides current academic study material for university business schools and for future researchers to apply the model used in this research for related expanded research. Value: The paper contributes a new model with two genres of mortgage rate (current mortgage rate and previous mortgage rate) and how these two types of mortgage rates influence mortgage refinancing.

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抵押贷款利率对抵押贷款再融资的影响

抵押贷款对购置住房财产至关重要，而抵押贷款利率对抵押贷款市场趋势、借款人和贷款人的决策起着重要作用。目的：本文旨在评估当前和以往的抵押贷款利率对抵押贷款再融资的综合影响。前期工作：本文倾向于抵押贷款利率与抵押贷款再融资之间相互作用的单一现实的本体论，以及随之而来的认识论，即它们之间的相互作用是可测量的。方法：本文采用实证主义范式和定量技术。它使用了从 Fusion Media 的经济和金融数据库中检索到的美国抵押贷款银行家协会（MBA）的数据。数据采用 OLS 技术进行分析。新颖性研究结果表明，当前实际抵押贷款利率和之前的抵押贷款利率对抵押贷款再融资有显著的积极影响，分别为 p=0.05 和 p=0.04。意义：研究结果对按揭银行家（贷款人）、按揭借款人和政策制定者的按揭贷款和再融资决策具有影响。它还为大学商学院和未来的研究人员提供了当前的学术研究材料，以便将本研究中使用的模型用于相关的扩展研究。价值：本文提供了一个包含两种抵押贷款利率（当前抵押贷款利率和以前抵押贷款利率）以及这两种抵押贷款利率如何影响抵押贷款再融资的新模型。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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International Journal of Economics and Financial Issues

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期刊介绍： International Journal of Economics and Financial Issues (IJEFI) is the international academic journal, and is a double-blind, peer-reviewed academic journal publishing high quality conceptual and measure development articles in the areas of economics, finance and related disciplines. The journal has a worldwide audience. The journal''s goal is to stimulate the development of economics, finance and related disciplines theory worldwide by publishing interesting articles in a highly readable format. The journal is published Bimonthly (6 issues per year) and covers a wide variety of topics including (but not limited to): Macroeconomcis International Economics Econometrics Business Economics Growth and Development Regional Economics Tourism Economics International Trade Finance International Finance Macroeconomic Aspects of Finance General Financial Markets Financial Institutions Behavioral Finance Public Finance Asset Pricing Financial Management Options and Futures Taxation, Subsidies and Revenue Corporate Finance and Governance Money and Banking Markets and Institutions of Emerging Markets Public Economics and Public Policy Financial Economics Applied Financial Econometrics Financial Risk Analysis Risk Management Portfolio Management Financial Econometrics.