Author: Richard L. Haney, Jr.

Start Page: 61
End Page: 73
Volume: 3
Issue Number: 1
Year: 1988
Publication: Journal of Real Estate Research

Abstract: Mortgage rates have long been considered to be 'sticky' rates compared to those on other capital market instruments. Using cross-spectral analysis and a more current mortgage market time series than previously available, the author documents 1) a well-functioning bond market with few lags and tight interval couplings, 2) a secondary mortgage market that appears to be fully integrated within the medium term capital markets, and 3) a primary mortgage market that evidences declining, yet persistently positive, lags behind bond market changes. Several institutional constraints are hypothesized to account for this seemingly inconsistent behavior.