Everybody knows what caused the housing bubble, with its breathtaking, though ephemeral, increase in prices, right? A long run of low mortgage interest rates, loose lending and low (to nonexistent) downpayment requirements are the usual culprits cited by experts. But those factors can be blamed for only a small part of the bubble, according to research published this week by economists Edward Glaeser and Joshua Gottlieb of Harvard University and Joseph Gyourko of the Wharton School at the University of Pennsylvania. They write: “It isn’t that low interest rates don’t boost housing prices. They do.”
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio
Most Popular Articles
Latest Articles
Sample post – Bo
this is copy on the article
-
How Paris Hilton demonstrated an age-old accounting principle and why this matters for clients
-
Making the 7-day refi reality: Why now Is the time to modernize the mortgage process
-
Affordability-first search: Why patent revival puts real estate at a crossroads
-
Here’s why non-QM earned its place at the mortgage dinner table
-
The future of QC: AI, innovation and the human element
Diana Golobay was a reporter with HousingWire through mid-2010, providing wide-ranging coverage of the U.S. financial crisis. She has since moved onto other roles as a writer and editor.see full bio