The housing and mortgage markets have played an unprecedented role in the U.S. economy recovery from the recession of 2003. That the strong housing and mortgage markets cushioned the severity of the economy’s difficulties and played such an important role in the recovery is without precedent. The counter-cyclical behavior of housing markets is due to a number of unique factors. Chief among these is the maturation of the housing finance system, which has integrated the nation’s housing and mortgage markets with global capital markets through the large and rapidly growing mortgage backed securities market. In all likelihood, while housing and mortgage markets will not play an identical counter-cyclical role in future business cycles, they will no longer perform the damaging pro-cyclical role they have in the past. This article shows how the housing finance system in its current form has been the key to the powerful positive effect that housing and mortgage markets have had on the overall economy.
Affordable Housing Architecture Asia Borrowing Constraints Canada China Colombia Commercial Brokerage covid-19 CRE Credit Risk Transfers Debt Market Demographics Development e-Commerce Equity Market Ethnic Factors Europe Foreclosures Global Global Financial Crisis hospitality Housing & Residential Housing Supply India inflation Investing land use regulation Macroeconomics Microeconomics Mixed-Use Mobility Mortgage Rates Mortgages Multi-family Non-Traditional Mortgages office sector Political Risk Real Estate Investment Trusts Recession Rental Retail South America Sub-Prime Mortgages Sustainability United States Urban Urbanization work from home