Cost of credit, mortgage demand and house prices

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

Full text not available from this repository. (Request a copy)


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

Actions (login required)

View Item
View Item