Mortgage innovations fuelled pre-crisis housing boom – paper

mortgage-key-in-lock

A rise in mortgage innovations – such as teaser rates, interest-only loans or negative amortisation periods – helped fuel the rise of house prices in the decade before the financial crisis, researchers find in a paper published by the Federal Reserve Bank of Chicago.

Jane Dokko, Benjamin Keys, and Lindsay Relihan use data on more than 60 million loans and house price indexes for 1,163 US counties to examine the use of non-traditional mortgage products from 1993–2007.

They find that in counties

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: