Innovations in Mortgage Markets and Increased Spending on Housing

Mark Doms and John Krainer

No 2007-05, Working Paper Series from Federal Reserve Bank of San Francisco

Abstract: Innovations in the mortgage market since the mid-1990s have effectively reduced a number of financing constraints. Coinciding with these innovations, we document a significant change in the propensity for households to own their homes, as well as substantial increases in the share of household income devoted to housing. These changes in housing expenditures are especially large for those groups that faced the greatest financial constraints, and are robust across the changing composition of households and their geographic location. We present evidence that young, constrained households may have used newly designed mortgages to finance their increased expenditures on housing.

Keywords: Mortgages; Housing - Finance (search for similar items in EconPapers)
JEL-codes: D11 D12 O33 R21 (search for similar items in EconPapers)
Pages: 43
Date: 2007-07-01
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (24)

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DOI: 10.24148/wp2007-05

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