Why did Household Mortgage Leverage Rise from the mid-1980 s until the Great Recession ?

@inproceedings{Bokhari2013WhyDH,
  title={Why did Household Mortgage Leverage Rise from the mid-1980 s until the Great Recession ?},
  author={Sheharyar Bokhari},
  year={2013}
}
  • Sheharyar Bokhari
  • Published 2013
Between 1985 and 2007, the share of household mortgage debt as a proportion of the total value of housing in the US increased substantially from 30% to an all-time high of 50%. With the decline in house prices, these high levels of leverage increased the propensity at which households defaulted. In this article, we examine household decisions on mortgage leverage using new extensive loan-level data from Fannie Mae over the sample period 1986 to 2010. We conceptualize a market for leverage per… CONTINUE READING