Mobile Foreigners: Mortgage Lock-In and H-1B Demand (opens in new tab)

The 2022 rise in U.S. mortgage rates increased relocation costs for homeowners with low-rate mortgages. This cost varies across destinations because each draws workers from a different mix of labor markets. We build an in-migration mortgage-payment wedge from HMDA loans and pre-shock IRS migration networks. From 2017 to 2024, higher wedges reduce college-educated homeowner in-migration, leave renters unaffected, and raise H-1B sponsorship reques...