Mortgage debt as a moderator in the association between unemployment and health

While homeownership is generally viewed as good for society, the consequences of the concomitant mortgage debt have not been well examined. This study investigates the role of mortgage debt as a moderator in the relationship between unemployment and health.

A cross-sectional analysis of a representative sample of US homeowners aged 38-46 surveyed in 1998-2006.

Subjects were 3667 adults living in owned homes aged 38-46 who reported being either employed or unemployed. Logistic models were performed using maximum likelihood estimation to estimate the relative risk of self-reporting fair or poor health with regard to employment status and how employment status interacted with mortgage status.

Among homeowners, being unemployed for more than 13 weeks with a mortgage is associated with a higher likelihood of reporting fair or poor health (odds ratio 2.38, 95% confidence interval 1.28-4.45). Being unemployed for more than 13 weeks with a mortgage loan that is more than 80% of the value of the home is associated with a greater likelihood of reporting fair or poor health (odds ratio 8.99, 95% confidence interval 2.50-32.29).

Among homeowners, mortgage debt increases the association between unemployment and poor health. In an economy where periods of high unemployment are likely to coincide with periods of falling home prices, homeowners may find themselves unemployed just when their homes lose value, intensifying financial stress.