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This paper argues that econometric analysis of housing price indexes before 2006 generated forecasts of future long-term price growth and low estimated probabilities of extreme price decreases. These forecasts of future increases in home-loan collateral values may have affected both the demand...
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respect to subprime mortgage applications and approvals. At the MSA level, past home price increases are associated with …
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substantiates both supply and demand effects of past price trends in housing markets, particularly with respect to subprime mortgage …
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