Analysis of Housing Market Dynamics Considering the Structural Characteristics of Mortgage Interest

Sustainability

Insoo Baek¹  Jaejun Kim¹  Joosung Lee²  Sanghyo Lee³ 

[1] Department of Architectural Engineering, Hanyang University, 222, Wangsipri-ro, Sungdong-gu, Seoul 04763, Korea;Division of Architecture and Civil Engineering, Kangwon National University, 346, Jungang-ro, Samcheok-si 25913, Korea;Division of Smart Convergence Engineering, Hanyang University ERICA, 55, Hanyangdaehak-ro, Sangnok-gu, Ansan-si 15588, Korea;

关键词: Korean housing market;    base interest;    spread;    housing policy;    Fisher–DiPasquale–Wheaton model;    vector error correction model;   

DOI  :  10.3390/su131910523

来源: DOAJ

【 摘 要 】

Mortgage loan interest rates consists of base interest and spread. In general, the base interest is adjusted by the government for the sustainability of the housing market. On the other hand, spread is determined by market mechanisms. Accordingly, the change pattern of base interest and spread may appear differently depending on the market situation. In the end, the effect of the government’s market intervention through interest rate policy may be different than expected. In this respect, the purpose of this paper is to analyze the effects of base interest and spread of the mortgage loan interest rate on the housing market and to derive important policy implications for the sustainability of the housing market. As a result of this study, the ineffectiveness of the government’s interest rate policies on the stability of the housing market was confirmed. The market mechanisms had more significant effects on the sustainability of the housing market than artificial political intervention. Further, housing supply policies based on the market mechanism could be more effective than housing demand policies based on interest-rate adjustments.

【 授权许可】

Unknown