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20 posts on "Housing"

February 18, 2014

Just Released: Who’s Borrowing Now? The Young and the Riskless!

Andrew Haughwout, Donghoon Lee, Wilbert van der Klaauw, and David Yun

According to today’s release of the New York Fed’s 2013:Q4 Household Debt and Credit Report, aggregate consumer debt increased by $241 billion in the fourth quarter, the largest quarter-to-quarter increase since 2007. More importantly, between 2012:Q4 and 2013:Q4, total household debt rose $180 billion, marking the first four-quarter increase in outstanding debt since 2008. As net household borrowing resumes, it is interesting to see who is driving these balance changes, and to compare some of today’s patterns with those of the boom period.

Continue reading "Just Released: Who’s Borrowing Now? The Young and the Riskless!" »

Posted by Blog Author at 11:15 AM in Household Finance, Housing | Permalink | Comments (1)

July 22, 2013

Distressed Residential Real Estate: Dimensions, Impacts, and Remedies

Diego Aragon, Richard Peach, and Joseph Tracy

On October 5, 2012, the Federal Reserve Bank of New York and the Rockefeller Institute of Government co-hosted the conference “Distressed Residential Real Estate: Dimensions, Impacts, and Remedies.” This post not only makes available a compendium of the findings of the conference, but also updates and extends some of the analysis presented. In particular, we look across states to assess the differential impacts of judicial and non-judicial processes to resolve the foreclosure crisis. Controlling for the peak percentage of loans that were seriously delinquent, we find that non-judicial states are much further along in reducing the backlog of loans in foreclosure. In addition, controlling for the magnitude of the decline in home prices from peak to trough, we observe that home prices have recovered considerably more in the non-judicial states.

Continue reading "Distressed Residential Real Estate: Dimensions, Impacts, and Remedies" »

Posted by Blog Author at 7:00 AM in Housing, Regional Analysis | Permalink | Comments (0)

July 15, 2013

Improving Access to Refinancing Opportunities for Underwater Mortgages

Joshua Abel and Joseph Tracy

Since the onset of the housing crisis, a focus of policymakers has been to help underwater homeowners lower their monthly mortgage payments by refinancing, principally through the Home Affordable Refinance Program (HARP). This enables households to commit more money to consumption, debt reduction, and saving. Lower monthly payments also decrease the risk of mortgage defaults, allowing homeowners to stay in their homes and reducing expected losses for mortgage guarantors Fannie Mae and Freddie Mac, which remain under conservatorship of the Federal Housing Finance Agency. Stanching the flow of defaults also helps to firm up the housing market and, therefore, the economy as a whole. In this post, we examine some simple adjustments to HARP that would help to continue the program’s recent success and provide additional support to the housing market recovery—an undertaking that has added significance with the recent increase in mortgage rates, which could hamper refinancing activity moving forward.

Continue reading "Improving Access to Refinancing Opportunities for Underwater Mortgages" »

Posted by Blog Author at 7:00 AM in Housing | Permalink | Comments (4)

April 17, 2013

Young Student Loan Borrowers Retreat from Housing and Auto Markets

Meta Brown and Sydnee Caldwell

Student loans have soared in popularity over the past decade, with the aggregate student loan balance, as measured in the FRBNY Consumer Credit Panel, reaching $966 billion at the end of 2012. Student debt now exceeds aggregate auto loan, credit card, and home-equity debt balances—making student loans the second largest debt of U.S. households, following mortgages. Student loans provide critical access to schooling, given the challenge presented by increasing costs of higher education and rising returns to a degree. Nevertheless, some have questioned how taking on extensive debt early in life has affected young workers’ post-schooling economic activity.

Continue reading "Young Student Loan Borrowers Retreat from Housing and Auto Markets" »

Posted by Blog Author at 7:00 AM in Household Finance, Housing | Permalink | Comments (4)

March 26, 2013

First Impressions Can Be Misleading: Revisions to House Price Changes

Joseph Tracy, Richard Peach, and Joshua Abel

An assiduous follower of the national house price charts that the New York Fed maintains on its web page may have noticed that we appear to be rewriting history as we update the charts every month. For example, last month we reported that the median twelve-month house price change across all counties for December 2012 was 3.68 percent. However, this month, we indicate that this same median change for December 2012 was instead 3.45 percent. Why the change? Was the earlier reported number a mistake that we simply corrected this month? If not, what explains the revision to the initial report?

Continue reading "First Impressions Can Be Misleading: Revisions to House Price Changes" »

Posted by Blog Author at 9:30 AM in Housing | Permalink | Comments (0)

February 28, 2013

Just Released: Press Briefing on Household Debt and Credit

Meta Brown, Andrew Haughwout, Donghoon Lee, Joelle Scally,
and Wilbert van der Klaauw


This morning, New York Fed director of research Jamie McAndrews joined Bank economists to brief the press on economic developments. With this morning’s release of the Quarterly Report on Household Debt and Credit for 2012:Q4, the briefing focused specifically on recent developments in household debt and credit.

Continue reading "Just Released: Press Briefing on Household Debt and Credit" »

Posted by Blog Author at 1:00 PM in Education, Household Finance, Housing | Permalink | Comments (0)

February 13, 2013

Underwater and Drowning? Some Facts about Mortgages that Could Be Targeted by Eminent Domain

Andreas Fuster, Caitlin Gorback, and Paul Willen

Since the onset of the subprime crisis, many places across the United States have been affected by high levels of negative equity (meaning that borrowers owe more on their mortgages than their homes are worth), an associated flood of foreclosures, and loss of local wealth. In mid-2012, a community advisory firm, Mortgage Resolution Partners (MRP) approached the government of San Bernardino County, California (a region with particularly high levels of negative equity) and pitched the idea of using eminent domain to seize privately securitized mortgage loans in order to restructure or refinance them. The MRP proposal was largely based on a plan by Cornell University law professor Robert Hockett. In late January, this controversial plan was abandoned by San Bernardino County, yet it remains under consideration in other counties. While a lot of the debate surrounding the plan has centered on value judgments and legal issues, in this post we look at available data in order to get an idea of the landscape of loans that could have been affected by such a program in San Bernardino County.

Continue reading "Underwater and Drowning? Some Facts about Mortgages that Could Be Targeted by Eminent Domain " »

Posted by Blog Author at 7:00 AM in Household Finance, Housing | Permalink | Comments (4)

January 16, 2013

How Severe Was the Credit Cycle in the New York-Northern New Jersey Region?

Jaison R. Abel and Richard Deitz

U.S. households accumulated record-high levels of debt in the 2000s, and then began a process of deleveraging following the Great Recession and financial crisis. In some parts of the country, the rise and fall in household indebtedness was quite a bit sharper than in others. In this post, we highlight some of our research examining the magnitude of the recent credit cycle, and focus on how significant it’s been in New York State and northern New Jersey. Compared with the nation as a whole, we find that the region experienced a relatively mild credit cycle, although pockets of elevated household financial stress exist.

Continue reading " How Severe Was the Credit Cycle in the New York-Northern New Jersey Region?" »

Posted by Blog Author at 7:00 AM in Household Finance, Housing, Regional Analysis | Permalink | Comments (0)

December 31, 2012

Why Isn’t the Thirty-Year Fixed-Rate Mortgage at 2.6 Percent?

Andreas Fuster and David Lucca

As of mid-December, the average thirty-year fixed-rate mortgage was near its historic low of about 3.3 percent, or half its level in August 2007 when financial turmoil began. However, yield declines in the mortgage-backed-securities (MBS) market, where bundles of mortgage loans are sold to investors, have been even more dramatic. In fact, all else equal, had these declines passed through to loan rates one-for-one, the average mortgage rate would now be around 2.6 percent. In this post, we summarize some of the findings from a workshop held at the New York Fed in early December aimed at better understanding the drivers behind the increased wedge between mortgage loan and MBS rates.

Continue reading "Why Isn’t the Thirty-Year Fixed-Rate Mortgage at 2.6 Percent? " »

Posted by Blog Author at 7:00 AM in Financial Institutions, Housing | Permalink | Comments (8)

November 29, 2012

Just Released: Press Briefing on Housing Conditions and the Economic Impact of Superstorm Sandy on the Region

Jaison R. Abel, Jason Bram, and Claire Kramer

At today’s regional economic press briefing, we provided an update on housing conditions as well as an initial assessment of superstorm Sandy’s economic impact on the region.

Continue reading "Just Released: Press Briefing on Housing Conditions and the Economic Impact of Superstorm Sandy on the Region" »

Posted by Blog Author at 1:00 PM in Housing, Regional Analysis | Permalink | Comments (0)
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