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dc.contributor.authorFuster, Andreasen_US
dc.contributor.authorWillen, Paul S.en_US
dc.date.accessioned2010-10-01en_US
dc.date.accessioned2012-06-20T16:10:04Z-
dc.date.available2012-06-20T16:10:04Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/59246-
dc.description.abstractThis paper measures the effects on the primary U.S. mortgage market of the large-scale asset purchase (LSAP) program in which the Federal Reserve bought $1.25 trillion of mortgagebacked securities in 2009 and 2010. We use an event-study approach and measure the movements in both prices and quantities around the initial announcement of the LSAP and subsequent changes to the program. We use a new dataset to document the changes in the menu of rates and points offered to borrowers and show that there was wide dispersion in the rate changes generated by the announcement of the LSAP program, with some borrowers seeing immediate rate reductions of up to 40 basis points and other borrowers confronting rate increases. We show that the LSAP program led to a substantial boost in market activity, with discontinuous increases in searches, applications and originations for refinance mortgages, but not purchase mortgages. Finally, we show that more creditworthy borrowers were significantly more likely to benefit from the improved credit availability.en_US
dc.language.isoengen_US
dc.publisherFederal Reserve Bank of Boston Boston, Mass.en_US
dc.relation.ispartofseriesPublic policy Discussion Papers, Federal Reserve Bank of Boston 10,4en_US
dc.subject.jelE5en_US
dc.subject.jelE21en_US
dc.subject.jelG21en_US
dc.subject.ddc330en_US
dc.subject.stwHypotheken_US
dc.subject.stwKreditmarkten_US
dc.subject.stwStaatliche Einflussnahmeen_US
dc.subject.stwKreditpolitiken_US
dc.subject.stwAsset-backed securityen_US
dc.subject.stwUSAen_US
dc.title$1.25 trillion is still real money: Some facts about the effects of the Federal Reserve's mortgage market investmentsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn635924471en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Public Policy Discussion Papers, Federal Reserve Bank of Boston

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