The distribution of housing equity in different regions affects how people respond to changes in interest rates, which in turn impacts the effectiveness of monetary policy. By analyzing detailed loan data, researchers found that regions with more housing equity tend to spend more after interest rate cuts. However, this effect can change depending on how house prices are growing in each region. In the past, regions with less equity saw less of an economic boost from interest rate cuts. This suggests that policymakers should pay attention to how housing equity is distributed across regions when making decisions about monetary policy.