Bowling alone, buying alone: The decline of co-borrowers in the US mortgage market

Egle Jakucionyte and Swapnil Singh

Journal of Housing Economics, 2022, vol. 58, issue PB

Abstract: This paper documents stylized and empirical facts associated with co-borrowers in the US mortgage market since the early 1990s. The share of mortgages with a co-borrower has declined dramatically across different income and demographic groups. We show that this decline, despite being a universal phenomenon across the US, evinces significant regional heterogeneity which contributes to the divergence in local mortgage markets outcomes. Regions with a lower co-borrower share have higher mortgage default rates. Further, in an event of an adverse shock, regions with a low share of mortgages with a co-borrower experience persistently lower house price growth, and lower purchase and refinance mortgage growth.

Keywords: Mortgage market; Co-borrowers; Mortgage default; House prices; Double-trigger hypothesis (search for similar items in EconPapers)
JEL-codes: G21 G51 R21 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Working Paper: Bowling Alone, Buying Alone: The Decline of Co-Borrowers in the US Mortgage Market (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:58:y:2022:i:pb:s1051137722000481

DOI: 10.1016/j.jhe.2022.101876

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