Friday, September 21, 2018
Dean F. Amel, Elliot Anenberg, Board of Governors of the Federal Reserve System and Rebecca Jorgensen provide thoughts On the Geographic Scope of Retail Mortgage Markets.
ABSTRACT: In this note, we first discuss why markets for mortgage originations are likely to be national in scope. We then show that even if mortgage markets were local, they would be unconcentrated. Finally, we test for an empirical relationship between the local concentration of mortgage lending and changes in mortgage rates and find essentially no correlation of concentration and rates.