Corpus ID: 44505646

The Impact of Interest Rates on House Prices and Housing Demand : Evidence from a Quasi-Experiment

  title={The Impact of Interest Rates on House Prices and Housing Demand : Evidence from a Quasi-Experiment},
  author={Morris a. Davis},
Federal housing policy actively promotes homeownership by subsidizing the cost of home mortgage debt and by guaranteeing many mortgages to households with low down payments or low credit scores. In this paper, we exploit a quasi-experiment – the Federal Housing Administration’s (FHA’s) surprise 50 basis point cut to its mortgage insurance premium in January 2015 – to provide evidence on the impact of government policy on housing demand for a population of households likely to be influenced by… Expand
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Disaggregation of 2015 Increase in FHA First-Time Buyer Volume, by Scenario
  • 2015