Category Archives: Housing and housing finance

Were mortgage securities badly mis-rated?

Juan Ospina and Harald Uhlig write, AAA securities did ok: on average, their total cumulated losses up to 2013 are 2.3 percent. . .Losses for other rating segments were substantially higher, e.g. reaching above 50 percent for non-investment grade bonds. … Continue reading

Posted in Financial Crisis of 2008, financial markets, Housing and housing finance | 20 Comments

Kevin Erdmann on U.S. housing supply

He writes, Just a few cities are at the heart of the housing supply problem, most notably New York City, Los Angeles, Boston, and San Francisco, which I refer to as Closed Access cities. There are two very different housing … Continue reading

Posted in disaggregating the economy, Housing and housing finance | 9 Comments

Dean Baker and Arnold Kling

We both went to Swarthmore College. Maybe that explains why we are on the same page on what to do about Freddie and Fannie, namely nothing. He writes, In the years immediately following the financial crisis, there were few people … Continue reading

Posted in Housing and housing finance | 1 Comment

The Housing Market, 2008 vs. 2018

Scott Sumner writes, OK, if was obvious that home prices were wildly excessive in 2006, why is that not also true today? Nominal house prices are now far above 2006 levels, and even in real terms they are rapidly approaching … Continue reading

Posted in Housing and housing finance | 18 Comments

Housing finance in other countries

In testimony before a House committee, Mike Lea writes, The standard mortgage instrument in other countries differs significantly from the US FRM. The standard product in Canada, Germany and many other European countries is a short to medium term fixed … Continue reading

Posted in Housing and housing finance | 7 Comments

Kevin Erdmann on housing in 2006-2008

He responds to my post. So, in the highest priced cities, middle class buyers were an insignificant part of the market, but when prices in those cities shot up and then collapsed, our main policy response was to prevent middle … Continue reading

Posted in Housing and housing finance | 19 Comments

The housing bubble and speculators, once again

Commenter Handle is skeptical of the revisionist view that investor loans rather than subprime lending fueled the housing bubble and bust. how does debt to high risk borrowers stay constant while everyone knows that underwriting standards dropped a lot? Why … Continue reading

Posted in Housing and housing finance | 22 Comments

Sub-prime crisis or speculator crisis?

Stefania Albanesi, Giacomo De Giorgi, and Jaromir Nosal write, A broadly accepted view contends that the 2007-09 financial crisis in the U.S. was caused by an expansion in the supply of credit to subprime borrowers during the 2001- 2006 credit … Continue reading

Posted in Housing and housing finance | 7 Comments

House Prices in the 21st Century

Alex Tabarrok writes, Over the entire 20th century, housing prices never once roce above 131, the 1989 peak. But beginning around 2000 house prices seemed to reach for an entirely new equilibrium. In fact, even given the financial crisis, prices … Continue reading

Posted in Housing and housing finance | 4 Comments

Sales of homes to foreign buyers

CNN Money reports, The National Association of Realtors released a report Tuesday that said foreign buyers and recent immigrants spent an estimated $153 billion on American properties in the year ending March 2017. That was a 49% increase over the … Continue reading

Posted in Housing and housing finance, Scott Sumner is Coherent, trade and immigration | 17 Comments