ARMs and the demand for housing☆
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Housing market volatility under COVID-19: Diverging response of demand in luxury and low-end housing markets
2022, Land Use PolicyCitation Excerpt :Lastly, uncertainties about future incomes and house price fluctuations also undermine housing purchase intentions (Zhou and Donald, 2010; Chung and Donald, 2002). On the other hand, in an effort to combat the negative economic shocks from COVID-19, the Federal Reserve eased money supply, and lowered the interest rates in early March in their monetary policy, which helps boost the housing demand (Harris, 1989; Schwab, 1982; Brueckner and James, 1989; Sommer and Sullivan, 2018). The soaring stock market after March also helps to increase the demand for housing.
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1996, Journal of Housing EconomicsBorrowing constraints and access to owner-occupied housing
1994, Regional Science and Urban Economics
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This research was conducted while Follain was a member of the Department of Finance at the University of Illinois. We gratefully acknowledge financial support from the Office of Real Estate Research at the University of Illinois. Also, we wish to thank Anil Bera, Roger Koenker, and the NBER conference participants (especially Patric Hendershott, James Kau, and N. Gregory Mankiw) for helpful comments. We also thank the National Association of Realtors (especially Forest Pafenberg) for providing the data used in this study. Errors, of course, are ours.