Analysis of Determinants of Spread in Apartment Junior Mortgage Loans during the Rising Rates Regime

This study examined the determinants of additional interest rates for junior mortgage loans of apartments in the online investment-linked financial industry. The rates of increase or decrease in the housing sales price index had a negative (‒) effect, while the KOSDAQ disparity index, the treasury bond yield and the bond credit spread had a positive (+) effect. This analysis confirmed that real estate debt investors through the online investment-linked financial industry have rationally behaved. The additional interest rates of loans were affected by changes in the stock market and even in the bond market, an alternative investment destination. On the other hand, this study separately analyzed an US model for falsification tests and the domestic real estate market and investors' investment sentiments were affected by seemingly unrelated external environmental factors. In particular, investment analysis controlling for external economic conditions including the variables from the United States could be more explanatory at certain times such as the growing volatility situations. This study could give meaningful implications to analyze the attitude of retail investors for housing or the real estate market as an investment target.