CORE
🇺🇦
make metadata, not war
Services
Services overview
Explore all CORE services
Access to raw data
API
Dataset
FastSync
Content discovery
Recommender
Discovery
OAI identifiers
OAI Resolver
Managing content
Dashboard
Bespoke contracts
Consultancy services
Support us
Support us
Membership
Sponsorship
Community governance
Advisory Board
Board of supporters
Research network
About
About us
Our mission
Team
Blog
FAQs
Contact us
Low mortgage rates and securitization: A distinct perspective on the U.S. housing boom
Authors
H Herwartz
F Xu
Publication date
20 March 2019
Publisher
'Wiley'
Doi
Abstract
Copyright © 2018 The Authors. In this paper, we analyse the impacts of low interest rates and lax underwriting standards on the US housing boom around the beginning of the new millennium. We suggest a time-varying mean of the log price-to-rent ratio (PtR) to capture the persistent changes in housing prices. We show that the increasing latent trend in the PtR was significantly affected by the increased securitization of residential mortgage loans and decreasing interest rates, with the former effect being about three times larger than the latter. In the absence of securitization, negative interest rates would have been needed to reproduce an equally large housing boom since 2003.German Research Foundation (HE2188/8-1); Fritz Thyssen Stiftung (Az.10.08.1.088)
Similar works
Full text
Open in the Core reader
Download PDF
Available Versions
Sustaining member
Brunel University Research Archive
See this paper in CORE
Go to the repository landing page
Download from data provider
oai:bura.brunel.ac.uk:2438/169...
Last time updated on 18/12/2020