Bank-specific shocks and house price growth in the U.S.

Author
Bremus, Franziska · Krause, Thomas · Noth, Felix
Published 2017
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Abstract

This paper investigates the link between mortgage supply shocks at the banklevel and regional house price growth in the U.S. using micro-level data on mortgage markets from the Home Mortgage Disclosure Act for the 1990-2014 period. Our results suggest that bank-specific mortgage supply shocks indeed affect house price growth at the regional level. The larger the idiosyncratic shocks to newly issued mortgages, the stronger is house price growth. We show that the positive link between idiosyncratic mortgage shocks and regional house price growth is very robust and economically meaningful, however not very persistent since it fades out after two years.

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Details

Title
Bank-specific shocks and house price growth in the U.S.
Author
Bremus, Franziska · Krause, Thomas · Noth, Felix
Year
2017
Published
2017
Type
Research Paper
Language
eng
Keywords
House Prices · Idiosyncratic Shocks · Granularity · Credit Supply · Financial Markets And The Macroeconomy · Banks · Other Depository Institutions · Micro Finance Institutions · Mortgages · Household Analysis
This is Version 1 of this record. We added this version on February 1, 2017. This version is based on an original data import from RePEc.