I am new to finance so may be this is a silly question but I got stuck here. I was thinking about how turnover rate is dependent on mortgage rate?
I was reading MBS by Lakhmir Hayre, there I had seen as mortgage rates are down, turnover rates first increase and after a long time they revert towards historical mean and vice-versa.
Can anybody please explain this relation?
Is this because when mortgage rates are high, the borrower will not move to a new house because he don't want a loan on high rate?