Research

Mortgage Credit Availablility, Housing Starts and the Integration of Mortgage and Capital Markets: New Evidence Using Linear Feedback

This paper employs linear feedback measures to examine the relationship between housing starts and the availability of mortgage credit. Estimates are obtained using monthly data with samples ending with May 1978 and beginning with June 1978. The results indicate that mortgage credit availability contributed significantly to short-run cycles in houses starts in the earlier sample. Such feedback is considerably smaller, however, in the later sample. The results suggest the housing finance sector has become integrated with the overall capital market as the result of the deregulation of thrift deposit rates and the development of securitized mortgage market.

Publication Information
Article Title: Mortgage Credit Availablility, Housing Starts and the Integration of Mortgage and Capital Markets: New Evidence Using Linear Feedback
Journal: AREUEA Journal (1991)
v. 12, iss. 1, pp. 25-40
Author(s): McGarvey, Mary G;  Meador, Mark
Researcher Information
    
McGarvey, Mary G
McGarvey, Mary G
Associate Professor of Economics
Expertise:
  • Applied Econometrics
  • Public Policy Analysis
  • Economics of Obesity
  • Labor Markets
Economics
CoB 525 P
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-9415
mmcgarvey1@unl.edu