credit, including © notice, is given to the source. Mortgages and Monetary Policy

We thank Morris Davis and Wouter den Haan for helpful suggestions. We are also grateful for comments to seminar participants at St. Louis Fed and IHS Vienna and conference participants at SAET in Paris and London Macro Workshop. The views expressed are those of the authors and not necessarily of the Federal Reserve Bank of St. Louis, the Federal Reserve System, or the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications