Mortgage Choices and Housing Speculation
نویسندگان
چکیده
منابع مشابه
Mortgage Choices and Housing Speculation
We describe a rational expectations model in which speculative bubbles in house prices can emerge. Within this model both speculators and their lenders use interestonly mortgages (IOs) rather than traditional mortgages when there is a bubble. Absent a bubble, there is no tendency for IOs to be used. These insights are used to assess the extent to which house prices in US cities were driven by s...
متن کاملMortgage Choices in Equilibrium
This paper identifies the optimal mortgage choice of homeowners, who are subject to counter-cyclical income volatility and idiosyncratic income risk. The market equilibrium of investors with similar income risk exposures, leads to pro-cyclical equilibrium interest rates. The key determinant of the optimal mortgage choice is the correlation of income with the business cycle. Homeowners with high...
متن کاملGIS and Spatial Analysis of Housing and Mortgage Markets
This article provides a spatial analytical framework for using Geographic Information Systems (GIS) technology in housing and mortgage market research. It discusses the nature of neighborhood effects and their influence in residential market behavior and outcomes. It then discusses how GIS can aid with empirical research investigations. GIS, coupled with spatial analytical tools, offers an idea...
متن کاملHousing Choices and Labor Income Risk
I show that individuals whose unemployment risk tends to increase more when local home prices fall optimally invest less in owner-occupied housing. Using a unique, Swedish register-based database, I nd that a one standard deviation increase in the covariance between individually estimated unemployment risks and local home prices implies an average increase in the value of households investmen...
متن کاملMortgage Market Institutions and Housing Market Outcomes ∗ Edward Kung
I develop an equilibrium model of housing and mortgage markets where house prices, mortgage interest rates, and leverage ratios are all determined endogenously. Agents are forward looking and have rational expectations. House prices adjust so that demand from new buyers clears with supply created by existing sellers. Housing demand is affected by the price and availability of contracts in the m...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2011
ISSN: 1556-5068
DOI: 10.2139/ssrn.1713308