European Parliament Library

Boom-Bust Cycles in Housing :, The Changing Role of Financial Structure, Calvin Schnure

Abstract
Why are housing markets so prone to boom-bust cycles? The mortgage market structure prior to the Savings and Loan crisis contributed to the volatility in real housing activity which, in turn, amplified the volatility in housing prices. The subsequent development of a national, market-based system of securitized mortgage finance has damped this boom-bust cycle. We test whether deviations of actual housing prices from values forecast by a model based on economic fundamentals have responded to the change in financial structure, and find that pricing errors have fallen significantly since the mid-1980s. Tests of the relative importance of the change in financial market structure versus the reduction of inflation over this period indicate a primary role for market structure in improving pricing efficiency
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. STRUCTURAL CHANGES IN MORTGAGE FINANCE""; ""III. HOUSE PRICES AND FUNDAMENTALS""; ""IV. WILL THE CURRENT BOOM BE FOLLOWED BY A BUST?""; ""V. MORTGAGE MARKET STRUCTURE AND MACROECONOMIC VOLATILITY""; ""VI. CONCLUSIONS""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (27 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781452743097

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