Lu Liu (@luliu

Lu Liu

167 posts

Lu Liu

@luliu_fin

Assistant Professor of Finance @Wharton, studying housing, mortgages, household finance.

Joined June 2023

Pinned
Lu Liu
@luliu_fin
Aug 2, 2023
🚨Recent working paper🚨with @JuliaAFonseca papers.ssrn.com/sol3/papers.cf… Paper summary: when current mortgage rates are higher than locked-in rates, households do not want to move and forego better-paid jobs, reducing housing market liquidity. 1/n
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Lu Liu
@luliu_fin
Mar 1, 2024
🚨New/revised job alert📢: Come work with Sylvain Catherine (@sc_cath), Huan Tang and me as a pre-doc at Wharton, on exciting topics in household finance, wealth inequality, housing and fintech! Please share, we'll start reviewing applications by March 15. @econ_ra #EconTwitter
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Lu Liu
@luliu_fin
Nov 7, 2023
Come work with Sylvain Catherine (@sc_cath) and me as a pre-doc at Wharton, on exciting topics in household finance, wealth inequality, housing and mortgage markets, and demographic change! Please share, we'll review applications by Dec 1. @econ_ra @econtwitter
Sylvain Catherine
@sc_cath
Nov 7, 2023
🧵1⃣🧪Lu Liu (@luliu_fin) and I are hiring a full-time research assistant in a two-year pre-doc position within the Wharton finance department. Our research will study household financial decisions, wealth inequality, housing and mortgage markets, and demographic change.
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Lu Liu
@luliu_fin
May 9, 2024
Thank you to the team @whartonknows and Dan Loney for giving me the opportunity to talk about mortgage lock-in, its effects on housing and labor markets, and policy suggestions, based on work with @JuliaAFonseca and @pgmabille. First video interview ever, fun experience!
Knowledge at Wharton
@whartonknows
May 7, 2024
The housing market is largely frozen in "mortgage lock-in," explains @Wharton professor @luliu_fin to open our four-part Ripple Effect podcast series on real estate. Tune in to the full interview to learn what caused this trend and what could lie ahead: whr.tn/4blCBlj
00:00
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Lu Liu
@luliu_fin
Apr 25, 2024
@JuliaAFonseca and I have an exciting new pre-doc opportunity to work with us on mortgage, housing and labor markets, which will involve both empirical and structural work, and tackling public policy questions! Please share. @econ_ra #EconTwitter
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Lu Liu
@luliu_fin
Oct 20, 2023
House prices have fallen by about double digits (!) in Canada/Australia, which are countries with floating-rate mortgages or shorter mortgage fixation lengths, but not in the US (from the @IMFNews latest Global Financial Stability Report): @JuliaAFonseca
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Lu Liu
@luliu_fin
May 2, 2024
Thank you to @MarketWatch for featuring @JuliaAFonseca and my Op-Ed on the proposed seller tax credit by the @WhiteHouseCEA, and how to unlock the housing market!
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Lu Liu
@luliu_fin
May 14, 2024
First time I hear Powell acknowledge this explicitly - did it really take 2+ years for the Fed to realize that the transmission of monetary tightening would be quite skewed (e.g. via first-time borrowers) and reduce mobility/freeze the housing market with 30yr FRMs?
Jeanna Smialek
@jeannasmialek
May 14, 2024
"The U.S. economy is different this time," Fed Chair Powell says. "People financed themselves into very low-rate mortgages, and now they won't move." "The same is true of businesses" + "it may be that policy is hitting the economy not quite as strongly." youtube.com/watch?v=lASjtn…
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Lu Liu
@luliu_fin
Aug 18, 2023
Don't miss this, @JuliaAFonseca gave a wonderful interview on how mortgage lock-in affects households!! Thanks so much to @VelocityWong and the team @NPR @planetmoney!
Julia Fonseca
@JuliaAFonseca
Aug 18, 2023
Had a great time talking to the folks at NPR’s @theindicator about mortgage lock in and my work with @luliu_fin. In 10 min, we touch on why mortgage lock in is so important, what @luliu_fin and I find, and the policy implications and trade offs: npr.org/2023/08/17/119…
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Lu Liu
@luliu_fin
Aug 2, 2023
Replying to @luliu_fin
Slides are from recent NBER SI HF/RE presentation (thanks @p_ganong for the plug!), video will be available for a little while: youtube.com/watch?v=be8rEk… (starts at around 4:14). 10/n
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Lu Liu
@luliu_fin
Mar 8, 2024
@WhiteHouse proposes tax credit to unlock housing market freeze - @JuliaAFonseca discusses the policy based on our research on mortgage lock-in #StateOfTheUnion
Julia Fonseca
@JuliaAFonseca
Mar 7, 2024
The average mortgage borrower has locked in a rate that is well below current rates. @luliu_fin and I show that this locks homeowners into their homes, making them less likely to move. The White House is proposing a new tax credit to try to unlock the lock-in. A quick thread:
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Lu Liu
@luliu_fin
Mar 8, 2024
Replying to @sc_cath and @JuliaAFonseca
I think part of the friction is that mortgages are securitized and held by MBS investors - makes ex post renegotiation much harder, and may depend on incentives along the intermediation chain (as research following the Great Recession has shown)
419
Lu Liu
@luliu_fin
Aug 2, 2023
Replying to @luliu_fin
Our main figure shows that the relationship between the mortgage rate delta (Δr = locked-in rate minus current market rate) and moving is nonlinear: 2/n
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Lu Liu
@luliu_fin
Jan 5, 2024
My extended take on whether "homebuyers should jump into the market" now that mortgage rates have decreased @JuliaAFonseca
ABC News
@ABC
Jan 4, 2024
Mortgage rates have plummeted in recent weeks, boosting the prospects of homebuyers previously stifled by high borrowing costs. trib.al/TYlutug
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