Bank-Specific Shocks and House Price Growth in the U.S
Thomas Krause and
No 1636, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research
This paper investigates the link between mortgage supply shocks at the banklevel and regional house price growth in the U.S. using micro-level data on mortgage markets from the Home Mortgage Disclosure Act for the 1990-2014 period. Our results suggest that bank-specific mortgage supply shocks indeed affect house price growth at the regional level. The larger the idiosyncratic shocks to newly issued mortgages, the stronger is house price growth. We show that the positive link between idiosyncratic mortgage shocks and regional house price growth is very robust and economically meaningful, however not very persistent since it fades out after two years.
Keywords: House Prices; Idiosyncratic Shocks; Granularity; Credit Supply (search for similar items in EconPapers)
JEL-codes: E44 G21 R20 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-mac and nep-ure
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Working Paper: Bank-specific shocks and house price growth in the U.S (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwpp:dp1636
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