State-backed mortgages promote little homeownership – Fed paper

mortgage-key-in-lock

Government guarantees of mortgages do little to increase homeownership, a team of researchers from the Federal Reserve finds.

The results are particularly relevant as the Federal Housing Finance Agency increased conforming loan limits (CLL) – the maximum loan size that can be guaranteed by the government – in 2017, 2018 and 2019. According to the report authors, homeownership is cited as one of the tool’s goals.

Serafin Grundl and You Suk Kim use property-level data on CLLs to estimate the

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: