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The sensitivity of housing demand to mortgage rates and available leverage is key to understanding the effect of … financing scenarios. We vary down payment constraints, mortgage rates, and non-housing wealth. We find that a relaxation of down … poorer and more credit-constrained borrowers. On the other hand, changing the mortgage rate by 2 percentage points only …
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Young Americans' residence choices have changed markedly over the past fifteen years, with recent cohorts entering the housing market at lower rates, and lingering much longer in parents' households. This paper begins with descriptive evidence on the residence choices of 1 percent of young...
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