The study of Households' Financial Liabilities: households' choice on mortgages, taking into account the different composition of families, during the period 2012-2019

This study, based on a survey conducted by the Bank of Italy, analyses the propensity of Italian households to choose between fixed-rate and variable-rate mortgages in a context of relative economic stability between 2012 and 2019. . The methodological approach adopted for the selection of participating households aims at ensuring a meaningful representativeness through inclusion criteria that take into account different socio-economic and cultural strata. The following sections examine the extent to which the choice of one type of tariff over another can be influenced by socio-economic and cultural variables. The aim of this review is to provide an understanding of the dynamics driving households' financial choices in a period of economic stability, in order to identify possible patterns of behavior and to contribute new insights and analysis to the existing literature. Our empirical results suggests that while certain economic and housing variables, such as annual income and house value, have a potential impact on mortgage type preference, their effects are not necessary crucials and need more voices in the analysis to confirm their own importance. This suggests that, within the observed period of relative economic stability, Italian households' choice between fixed and variable rate mortgages may be less sensitive to fluctuations in these financial factors than hypothesized. The socio-economic strata and cultural factors could underlie the nuances in these financial decisions. These open-ended conclusions call for further research into the cultural and behavioral factors that influence household financial decisions in stable economic climates.