The Experts below are selected from a list of 168 Experts worldwide ranked by ideXlab platform

Edward J Pinto - One of the best experts on this subject based on the ideXlab platform.

  • the impact of federal housing policy on housing demand and homeownership evidence from a quasi experiment
    Journal of Housing Economics, 2020
    Co-Authors: Morris A Davis, Stephen D Oliner, Tobias Peter, Edward J Pinto
    Abstract:

    Abstract Federal housing policy promotes homeownership by subsidizing Mortgage debt for many households with few assets and low credit scores. In this paper, we exploit the Federal Housing Administration's (FHA's) surprise 50 basis point cut to its annual Mortgage insurance premium in January 2015 to study the impact of federal housing policy and interest Rates on housing demand for a population of households likely to be influenced by changes to policy. The premium cut, which reduced monthly payments the same amount as a three-quarter percentage point drop in the Mortgage Rate, increased the purchasing power of the typical FHA borrower by 6 percent. Our analysis shows FHA borrowers increased the value of the housing they purchased by 2.5 percentage points relative to a control group of borrowers in areas with minimal FHA presence. The rise in spending reflected an increase in constant-quality home prices, with no significant change in the quality of housing purchased by FHA buyers. We also estimate that the premium cut induced approximately 17,000 households to become first-time homebuyers in the initial year after the cut, an increase that fell far short of the FHA's projection.

  • the impact of federal housing policy on housing demand and homeownership evidence from a quasi experiment
    Social Science Research Network, 2018
    Co-Authors: Morris A Davis, Stephen D Oliner, Tobias Peter, Edward J Pinto
    Abstract:

    Federal housing policy promotes homeownership by subsidizing Mortgage debt for many households with few assets and low credit scores. In this paper, we exploit the Federal Housing Administration’s (FHA’s) surprise 50 basis point cut to its annual Mortgage insurance premium in January 2015 to study the impact of federal housing policy and interest Rates on housing demand for a population of households likely to be influenced by changes to policy. The premium cut, which reduced monthly payments the same amount as a three-quarter percentage point drop in the Mortgage Rate, increased the purchasing power of the typical FHA borrower by 6 percent. Our analysis suggests FHA borrowers increased the value of the housing they purchased by 2.5 percentage points relative to a control group of borrowers in areas with minimal FHA presence. The rise in spending reflected an increase in constant-quality home prices, with no significant change in the quality of housing purchased by FHA buyers. We also estimate that the premium cut induced approximately 17,000 households to become first-time homebuyers in the initial year after the cut, an increase that fell far short of the FHA’s projection. Because the rise in constant-quality house prices affected both FHA and other buyers in areas with substantial FHA lending, non-FHA first-time buyers as a group incurred a cost of $180,000 for each of the 17,000 new first-time FHA buyers.

Lisa J. Dettling - One of the best experts on this subject based on the ideXlab platform.

  • Monetary Policy and Birth Rates: The Effect of Mortgage Rate Pass-Through on Fertility
    Social Science Research Network, 2020
    Co-Authors: Fergus Cumming, Lisa J. Dettling
    Abstract:

    This paper examines whether monetary policy pass-through to Mortgage interest Rates affects household fertility decisions. Using administrative data on Mortgages and births in the UK, our empirical stRategy exploits variation in the timing of when families were eligible for a Rate adjustment, coupled with the large reductions in the monetary policy Rate that occurred during the Great Recession. We estimate that each 1 percentage point drop in the policy Rate increased birth Rates by 2 percent. In aggregate, this pass-through of accommodative monetary policy to Mortgage Rates was sufficiently large to outweigh the headwinds of the Great Recession and prevent a “baby bust” in the UK, in contrast to the US. Our results provide new evidence on the nature of monetary policy transmission to households and suggest a new mechanism via which Mortgage contract structures can affect both aggregate demand and supply.

  • monetary policy and birth Rates the effect of Mortgage Rate pass through on fertility
    Research Papers in Economics, 2019
    Co-Authors: Fergus Cumming, Lisa J. Dettling
    Abstract:

    This paper examines whether monetary policy pass-through to Mortgage Rates affects household fertility decisions. Using administrative data on UK Mortgages and births, our empirical stRategy exploits variation in the timing of when families were eligible for a Rate adjustment, coupled with the large reductions in interest Rates that occurred during the Great Recession. We estimate that each 1 percentage point drop in the policy Rate increased birth Rates by 2%. In aggregate, this pass-through of accommodative monetary policy to Mortgage Rates was sufficiently large to outweigh the headwinds of the Great Recession and prevent a ‘baby bust’ in the UK, in contrast to the US. Our results provide new evidence on the nature of monetary policy transmission and suggest a new mechanism via which Mortgage contract structures can affect aggregate demand and supply.

Morris A Davis - One of the best experts on this subject based on the ideXlab platform.

  • the impact of federal housing policy on housing demand and homeownership evidence from a quasi experiment
    Journal of Housing Economics, 2020
    Co-Authors: Morris A Davis, Stephen D Oliner, Tobias Peter, Edward J Pinto
    Abstract:

    Abstract Federal housing policy promotes homeownership by subsidizing Mortgage debt for many households with few assets and low credit scores. In this paper, we exploit the Federal Housing Administration's (FHA's) surprise 50 basis point cut to its annual Mortgage insurance premium in January 2015 to study the impact of federal housing policy and interest Rates on housing demand for a population of households likely to be influenced by changes to policy. The premium cut, which reduced monthly payments the same amount as a three-quarter percentage point drop in the Mortgage Rate, increased the purchasing power of the typical FHA borrower by 6 percent. Our analysis shows FHA borrowers increased the value of the housing they purchased by 2.5 percentage points relative to a control group of borrowers in areas with minimal FHA presence. The rise in spending reflected an increase in constant-quality home prices, with no significant change in the quality of housing purchased by FHA buyers. We also estimate that the premium cut induced approximately 17,000 households to become first-time homebuyers in the initial year after the cut, an increase that fell far short of the FHA's projection.

  • the impact of federal housing policy on housing demand and homeownership evidence from a quasi experiment
    Social Science Research Network, 2018
    Co-Authors: Morris A Davis, Stephen D Oliner, Tobias Peter, Edward J Pinto
    Abstract:

    Federal housing policy promotes homeownership by subsidizing Mortgage debt for many households with few assets and low credit scores. In this paper, we exploit the Federal Housing Administration’s (FHA’s) surprise 50 basis point cut to its annual Mortgage insurance premium in January 2015 to study the impact of federal housing policy and interest Rates on housing demand for a population of households likely to be influenced by changes to policy. The premium cut, which reduced monthly payments the same amount as a three-quarter percentage point drop in the Mortgage Rate, increased the purchasing power of the typical FHA borrower by 6 percent. Our analysis suggests FHA borrowers increased the value of the housing they purchased by 2.5 percentage points relative to a control group of borrowers in areas with minimal FHA presence. The rise in spending reflected an increase in constant-quality home prices, with no significant change in the quality of housing purchased by FHA buyers. We also estimate that the premium cut induced approximately 17,000 households to become first-time homebuyers in the initial year after the cut, an increase that fell far short of the FHA’s projection. Because the rise in constant-quality house prices affected both FHA and other buyers in areas with substantial FHA lending, non-FHA first-time buyers as a group incurred a cost of $180,000 for each of the 17,000 new first-time FHA buyers.

Basit Zafar - One of the best experts on this subject based on the ideXlab platform.

  • the sensitivity of housing demand to financing conditions evidence from a survey
    American Economic Journal: Economic Policy, 2021
    Co-Authors: Andreas Fuster, Basit Zafar
    Abstract:

    The sensitivity of housing demand to Mortgage Rates and available leverage is key to understanding the effect of monetary and macroprudential policies on the housing market. However, since there is generally no exogenous variation in these variables that is independent of confounding factors (such as economic conditions or household characteristics), it is difficult to cleanly estimate these sensitivities empirically. We circumvent these issues by designing a survey in which respondents are asked for their maximum willingness to pay (WTP) for a home comparable to their current one, under different financing scenarios. We vary down payment constraints, Mortgage Rates, and non-housing wealth. We find that a relaxation of down payment constraints, or an exogenous increase in non-housing wealth, has large effects on WTP, especially for relatively poorer and more credit-constrained borrowers. On the other hand, changing the Mortgage Rate by 2 percentage points only changes WTP by about 5 percent on average. These findings have implications for theoretical models of house price determination, as well as for policy.

  • the sensitivity of housing demand to financing conditions evidence from a survey
    Research Papers in Economics, 2015
    Co-Authors: Andreas Fuster, Basit Zafar
    Abstract:

    The sensitivity of housing demand to Mortgage Rates and available leverage is key to understanding the effect of monetary and macroprudential policies on the housing market. However, since there is generally no exogenous variation in these variables that is independent of confounding factors (such as economic conditions or household characteristics), it is difficult to cleanly estimate these sensitivities empirically. We circumvent these issues by designing a stRategic survey in which respondents are asked for their willingness to pay (WTP) for a home comparable to their current one, under different financing scenarios. We vary Mortgage Rates, down payment constraints, and non-housing wealth. We find that a relaxation of down payment constraints, or an exogenous increase in non-housing wealth, has large effects on WTP, especially for relatively poorer and more credit-constrained borrowers. On the other hand, changing the Mortgage Rate by 2 percentage points only changes WTP by about 5 percent on average. These findings have implications for theoretical models of house price determination, as well as for policy.

Fergus Cumming - One of the best experts on this subject based on the ideXlab platform.

  • Monetary Policy and Birth Rates: The Effect of Mortgage Rate Pass-Through on Fertility
    Social Science Research Network, 2020
    Co-Authors: Fergus Cumming, Lisa J. Dettling
    Abstract:

    This paper examines whether monetary policy pass-through to Mortgage interest Rates affects household fertility decisions. Using administrative data on Mortgages and births in the UK, our empirical stRategy exploits variation in the timing of when families were eligible for a Rate adjustment, coupled with the large reductions in the monetary policy Rate that occurred during the Great Recession. We estimate that each 1 percentage point drop in the policy Rate increased birth Rates by 2 percent. In aggregate, this pass-through of accommodative monetary policy to Mortgage Rates was sufficiently large to outweigh the headwinds of the Great Recession and prevent a “baby bust” in the UK, in contrast to the US. Our results provide new evidence on the nature of monetary policy transmission to households and suggest a new mechanism via which Mortgage contract structures can affect both aggregate demand and supply.

  • monetary policy and birth Rates the effect of Mortgage Rate pass through on fertility
    Research Papers in Economics, 2019
    Co-Authors: Fergus Cumming, Lisa J. Dettling
    Abstract:

    This paper examines whether monetary policy pass-through to Mortgage Rates affects household fertility decisions. Using administrative data on UK Mortgages and births, our empirical stRategy exploits variation in the timing of when families were eligible for a Rate adjustment, coupled with the large reductions in interest Rates that occurred during the Great Recession. We estimate that each 1 percentage point drop in the policy Rate increased birth Rates by 2%. In aggregate, this pass-through of accommodative monetary policy to Mortgage Rates was sufficiently large to outweigh the headwinds of the Great Recession and prevent a ‘baby bust’ in the UK, in contrast to the US. Our results provide new evidence on the nature of monetary policy transmission and suggest a new mechanism via which Mortgage contract structures can affect aggregate demand and supply.