Template-type: ReDIF-Paper 1.0
Author-Name: Winfried Koeniger
Author-Name-First: Winfried
Author-Name-Last: Koeniger
Author-Person: pko83
Author-Name: Benedikt Lennartz
Author-Name-First: Benedikt
Author-Name-Last: Lennartz
Author-Name: Dr. Marc-Antoine Ramelet
Author-Name-First: Marc-Antoine
Author-Name-Last: Ramelet
Author-Person: pra1117
Title: On the transmission of monetary policy to the housing market
Abstract: We provide empirical evidence on the heterogeneous transmission of monetary policy to the housing market across and within countries. We use household-level data from Germany, Italy and Switzerland together with the respective monetary policy shocks identified from high-frequency data. We find that the pass-through of monetary policy shocks to rates of newly originated (fixed-rate) mortgages is twice as strong in Switzerland than in Germany and Italy. After an accommodative monetary policy shock, this is associated in the housing market with a larger immediate, and persistent increase of transitions from renting to owning; a stronger decrease in rents; and an increase of the price-rent ratio. Within Italy, we find a stronger pass-through to mortgage rates, housing tenure transitions and the price-rent ratio in the northern regions that have been characterized in the literature as more financially developed than the southern regions.
Length: 73 pages
Creation-Date: 2021
Contact-Email: forschung@snb.ch
File-URL: https://www.snb.ch/en/publications/research/working-papers/2021/working_paper_2021_06
File-Format: text/html
Number: 2021-06
Classification-JEL: E21, E52, R21
Keywords: Monetary policy transmission, housing market, home ownership, rents, house prices
Handle: RePEc:snb:snbwpa:2021-06