easing the access to the mortgage market); (f) The interest rate subsidy only has the latter effect; and (g) Compared to the … of housing downpayment and interest rate subsidies on the access to and the stability of the mortgage market. Our … analysis unveils a number of relevant policy lessons for the design of housing subsidy programs, namely: (a) Under fiscal …

-Sponsored Enterprises) in the U.S. mortgage market. First, I find that the subsidy has raised mortgage interest rates for all loans strictly … jumbo-conforming spread as an indication that the subsidy necessarily lowers mortgage rates and benefits conforming … eligible for the subsidy (conforming loans), which is contrary to conventional wisdom. I do so by applying regression …