Non-Recourse Mortgage and Housing Price Boom, Bust, and Rebound

Te Bao and L. Ding
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L. Ding: University of Groningen

No 15-02, CeNDEF Working Papers from Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance

Abstract: This paper investigates the impact of non-recourse vs. recourse mortgages on housing price dynamics in major US metropolitan statistical areas for the period from 2000 to 2013. We find evidence that non-recourse states experience faster price growth during the boom period (2000-2006), a sharper price drop during the bust period (2006-2009) and faster price recovery in the rebound period after a crisis (2009-2013). Moreover, the volatility of housing prices is higher in non-recourse states than in recourse states, particularly during the rebound period.

Date: 2015
New Economics Papers: this item is included in nep-ure
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Journal Article: –Nonrecourse Mortgage and Housing Price Boom, Bust, and Rebound (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ams:ndfwpp:15-02

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