TY - JOUR
T1 - Retail motor gasoline prices and the interest rate on mortgage loans
AU - Gill, Balbinder Singh
N1 - Publisher Copyright:
© 2024 John Wiley & Sons Ltd.
PY - 2025/1
Y1 - 2025/1
N2 - A significant negative relationship exists between the price of retail motor gasoline and the interest rate on mortgage loans. Prospective homeowners avoid purchasing a mortgage-financed home in areas where gasoline prices are rising to avoid endangering their future mortgage payments due to the greater cost of motor fuel consumption. The passage of government regulations and incentives aimed at increasing either the demand for or supply of alternative fuels, lowering the cost for gasoline customers to switch to alternative fuels, lessens the negative impact of gasoline prices on the cost of mortgage credit. Public transit mitigates the negative gasoline price impact.
AB - A significant negative relationship exists between the price of retail motor gasoline and the interest rate on mortgage loans. Prospective homeowners avoid purchasing a mortgage-financed home in areas where gasoline prices are rising to avoid endangering their future mortgage payments due to the greater cost of motor fuel consumption. The passage of government regulations and incentives aimed at increasing either the demand for or supply of alternative fuels, lowering the cost for gasoline customers to switch to alternative fuels, lessens the negative impact of gasoline prices on the cost of mortgage credit. Public transit mitigates the negative gasoline price impact.
KW - alternative fuels
KW - climate change
KW - gasoline prices
KW - household finance
KW - mortgage interest rate
UR - http://www.scopus.com/inward/record.url?scp=85193031468&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85193031468&partnerID=8YFLogxK
U2 - 10.1111/eufm.12496
DO - 10.1111/eufm.12496
M3 - Article
AN - SCOPUS:85193031468
SN - 1354-7798
VL - 31
SP - 115
EP - 174
JO - European Financial Management
JF - European Financial Management
IS - 1
ER -
