Housing Speculation, GSEs, and Credit Market Spillovers / Natee Amornsiripanitch, Philip E. Strahan, Song Zhang, Xiang Zheng.

Format:

Book

Author/Creator:

Amornsiripanitch, Natee.

Contributor:

National Bureau of Economic Research.

Strahan, Philip E.

Zhang, Song.

Zheng, Xiang.

Series:

Working Paper Series (National Bureau of Economic Research) no. w32209.

NBER working paper series no. w32209

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2024.

Summary:

In 2021, the U.S. Treasury reduced Government Sponsored Enterprises (GSEs) exposure to speculative mortgages. As a result, GSE purchases fell by about 20 percentage points. The policy reduced credit to speculative investors in housing, but increased credit to unaffected parts of the conforming-mortgage market. Banks responded by reallocating provision of speculative mortgage credit across their local markets, which in turn affected their provision of small business credit. These adjustments are most pronounced where banks do not own branches. The results suggest that banks manage credit provision not only in a macro sense - the focus of most research - but also market-by-market.

Notes:

Print version record

March 2024.