Download This Paper Open PDF in Browser
Add Paper to My Library
Permalink
Using the URL or DOI link below will ensure access to this page indefinitely
Copy URL
Copy URL

Bank-Specific Shocks and House Price Growth in the U.S.

DIW Berlin Discussion Paper No. 1636

45 Pages Posted: 7 Feb 2017

See all articles by Franziska Bremus

Franziska Bremus

German Institute for Economic Research (DIW Berlin)

Thomas Krause

Halle Institute for Economic Research

Felix Noth

Otto-von-Guericke-Universität Magdeburg; Halle Institute for Economic Research

Date Written: February 2017

Abstract

This paper investigates the link between mortgage supply shocks at the bank level 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

JEL Classification: E44, G21, R20

Suggested Citation

Bremus, Franziska and Krause, Thomas and Noth, Felix, Bank-Specific Shocks and House Price Growth in the U.S. (February 2017). DIW Berlin Discussion Paper No. 1636. Available at SSRN: https://ssrn.com/abstract=2912793 or http://dx.doi.org/10.2139/ssrn.2912793

Franziska Bremus (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Thomas Krause

Halle Institute for Economic Research ( email )

P.O. Box 11 03 61
Kleine Maerkerstrasse 8
D-06018 Halle, 06108
Germany

HOME PAGE: http://sites.google.com/site/thomaskrauseresearch/

Felix Noth

Otto-von-Guericke-Universität Magdeburg ( email )

Universitätspl. 2
PSF 4120
Magdeburg, D-39106
Germany

Halle Institute for Economic Research

P.O. Box 11 03 61
Kleine Maerkerstrasse 8
Halle, 06108
Germany

HOME PAGE: http://www.iwh-halle.de/asp/person.asp?fnh&Lang=e&Abteilung=fin

Download This Paper Open PDF in Browser

Register to save articles to
your library

Register

Paper statistics

Downloads
37
Abstract Views
310
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information

Related eJournals