House Price Indexes and the Global Financial Crisis
نویسنده
چکیده
Why is this topic of house price indexes important? The Global Financial Crisis has several causes but a main cause was a housing bubble in the U.S. which led banks to make mortgage loans that were based on the assumption that house prices were not rising unusually quickly. If accurate regional house price indexes for the U.S. would have been widely available to the public, it is unlikely that so many bad housing loans would have been made; i.e., the housing bubble would have been immediately visible and both lenders and borrowers could have foreseen that U.S. house price inflation rates over the period 2000-2007 were not sustainable.
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