Mortgage Markets

Working Paper

Paying Too Much? Borrower Sophistication and Overpayment in the U.S. Mortgage Market

WP 24-11 – Comparing mortgage rates that borrowers obtain to rates that lenders could offer for the same loan, the authors find that many homeowners significantly overpay for their mortgage, with overpayment varying across borrower types and with market interest rates.

Featured Work

When Mortgage Lock-In Locks Out Homebuyers

Economic Insights — Historically, housing sales decline when interest rates go up, but sales have dropped more than expected since the current cycle of interest rate hikes began in early 2022. Mortgage lock-in may explain why.

Mortgage Markets

Working Paper

How Much Does Racial Bias Affect Mortgage Lending? Evidence from Human and Algorithmic Credit Decisions

WP 24-09 – We assess racial discrimination in mortgage approvals using confidential data on mortgage applications.

Is Loan Volume Becoming Concentrated Among Too Few Online Mortgage Providers?

Research in Focus — By studying a period of substantial regulatory change and technological innovation, three researchers identify shifts in market concentration within the U.S. mortgage market.

Featured Data

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Advancing Fairness in Lending Through Machine Learning

Showcasing the work of Philadelphia Fed researchers, this interactive data visualization explores an approach to credit lending using machine learning and fairness goals that may help address current disparities in credit access.

Updated: 05 Feb ’24