After the collapse of housing markets during the Great Depression, the government played a large role shaping the future of the housing .nance, housing policy in the New Deal, as well as the development of the GI Bill for war veterans that had signi.cant importance for mortgage .nance and...

In this paper we revisit the connection between changes in interest rates, loan-to-value ratios and expectations in inaÌuencing housing prices. We construct a two good general equilibrium model in which housing is a composite good produced using structures and land. We show that changes in...