Becoming a first-time homebuyer is quantified in two stages using household data. A renter demand curve is estimated to calculate the consumer surplus gain from moving into housing consumption equilibrium. Probit is used to estimate the probability of becoming a first-time homebuyer. The model...

Techniques used to predict mortgage defaults during a relatively stable period proved less successful during the turbulent financial cycle of the early 1980s. An alternative specification of the relationship between defaults, homeowner equity, and interest-rate movements better captures the...