JOURNAL OF THE HOUSING RESEARCH FOUNDATION "JUSOKEN", 34(34) 137-148, 2007
The recent Japanese mortgage market is changing. While Fixed Rate Mortgage called Flat35 was introduced, private companies supplied various types of mortgage. The study estimated the factors of mortgage choice, prepayment, refinancing and delay of payment by using the Instrumental Variable and Proportional Hazard Model, etc. Analysis of the results implies that the change of interest rate, risk tolerance and the type of residence such as mobility influence mortgage choice and that the rise of interest rates causes the fall of housing demand. It also implies MBS investors are more risk averse than stock investors, but that they put greater priority on profitability than bond investors.