The ins and outs of mortgage debt during the housing boom and bust

Neil Bhutta

Journal of Monetary Economics, 2015, vol. 76, issue C, 284-298

Abstract: From 1999 to 2013, U.S. mortgage debt doubled before contracting sharply. I estimate mortgage inflows and outflows that shed light on the sources of volatility. During the boom, inflows from real estate investors tripled, far outpacing other segments such as first-time homebuyers. During the bust, a collapse in inflows keyed the debt decline, while an expansion of outflows due to defaults played a more minor role. Inflow declines partly reflect a dramatic falloff in first-time homebuying, especially for low credit score individuals. Further analysis helps support the notion that the differential decline by credit score reflects markedly tightened credit supply.

Keywords: Mortgage debt; Mortgage default; Deleveraging; First-time homebuyer; Credit supply (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (52)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:76:y:2015:i:c:p:284-298

DOI: 10.1016/j.jmoneco.2015.02.005

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