Data and Code For: Mortgage Prepayment and Path-Dependent Effects of Monetary Policy

  • David Berger (Duke University, National Bureau of Economic Research) (Contributor)
  • Konstantin Milbradt (Creator)
  • Fabrice Tourre (Creator)
  • Joseph Vavra (Creator)



How much ability does the Fed have to stimulate the economy by cutting interest rates? We argue that the presence of substantial debt in fixed-rate, prepayable mortgages means that the ability to stimulate the economy by cutting interest rates depends not just on their current level but also on their previous path. Using a household model of mortgage prepayment matched to detailed loan-level evidence on the relationship between prepayment and rate incentives, we argue that recent interest rate paths will generate substantial headwinds for future monetary stimulus.
Date made available2021
PublisherICPSR - Interuniversity Consortium for Political and Social Research
Date of data productionJan 1 1992 - Dec 31 2017
Geographical coverageUnited States of America

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