This podcast episode explores the concept of "mortgage lock-in" and its effects on housing and labor markets. Mortgage lock-in refers to the situation where homeowners have a fixed-rate mortgage with a low interest rate and are reluctant to move due to the financial cost of giving up that rate. The research suggests that mortgage lock-in can lead to a decrease in the number of homes for sale, high home prices, and a disruption in labor markets. It discusses the impact of mortgage lock-in on labor markets, including potential consequences such as companies struggling to hire employees and a labor mismatch problem. The episode also explores alternative options for homeowners, such as portable mortgages and expanding mortgage assumability. The benefits of homeownership are also highlighted, including the ability to build equity and create a personalized outdoor space.
