Akgündüz, Yusuf Emre and Dursun-de Neef, H. Özlem and Hacihasanoğlu, Yavuz Selim and Yılmaz, Fatih (2023) Cost of credit, mortgage demand and house prices. Journal of Banking and Finance, 154 . ISSN 0378-4266
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Official URL: https://dx.doi.org/10.1016/j.jbankfin.2023.106953
Abstract
This paper studies the relationship between mortgage rates and house prices. We exploit a subsidized mortgage program that reduced the mortgage rates of state-owned banks in Turkey during the summer of 2020 as an exogenous shock to provide causal estimates of a decrease in the cost of credit on mortgage demand and house prices. The effects are estimated using a detailed dataset on all house sales with mortgages. We find that a 1 percentage point decrease in annual mortgage rates led to an increase in individual mortgage loans by 3.3% and an increase in house prices by 1.6%.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | House prices; Mortgage lending; Mortgage rates |
| Divisions: | Faculty of Arts and Social Sciences |
| Depositing User: | Yusuf Emre Akgündüz |
| Date Deposited: | 07 Aug 2023 23:17 |
| Last Modified: | 07 Aug 2023 23:17 |
| URI: | https://research.sabanciuniv.edu/id/eprint/47606 |
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