Description
Measuring the sensitivity of housing demand to mortgage rates and available leverage is challenging because there is generally no exogenous variation in these variables. This paper circumvents this issue by designing a strategic survey in which respondents report their willingness to pay (WTP) for a home under different financing scenarios. Relaxation of down payment constraints, or an exogenous increase in non-housing wealth, has large effects on WTP, especially for poorer and more credit-constrained households. However, changing the mortgage rate has only moderate effects on WTP. These findings have implications for theoretical models of house price determination and for policy.
Date made available | 2022 |
---|---|
Publisher | ICPSR - Interuniversity Consortium for Political and Social Research |
Date of data production | Jan 1 2014 - Dec 31 2014 |
Geographical coverage | USA |